On April 28, Bitcoin's value fell to $75,792, a 2.6% decline from the previous day, after struggling to maintain a price above $79,000. This downturn is attributed to disappointing macroeconomic indicators from the U.S. and a significant withdrawal of funds from Bitcoin ETFs.
The University of Michigan's consumer sentiment index reached a record low of 49.8, with inflation expectations increasing from 3.8% to 4.8% for the next year, and long-term expectations climbing to 3.5%, the highest since 2011. These factors are complicating the Federal Reserve's ability to adjust monetary policy, as officials fear that reducing interest rates too soon could lead to further inflation. The Fed is expected to keep interest rates steady between 3.5% and 3.75% in their upcoming meeting.
ETF Withdrawals and Market Activity
On April 27, U.S. Bitcoin ETFs experienced a net outflow of $263.18 million, halting a nine-day inflow streak and causing traders to exercise caution ahead of the Federal Open Market Committee (FOMC) meeting. Despite a 199% increase in net buying volume reported by Glassnode, overall trading volumes decreased by 13.8%, indicating that the current market activity is occurring with lower speculative interest.
