Yahya 
In a devastating turn of events on Wednesday, investors withdrew a staggering $563 million from the exchange-traded funds (ETFs) market in US dollars, which focused on spot bitcoin, marking the highest single-day outflow since the funds’ introduction. This marks the sixth consecutive day of withdrawals since Wednesday. In the period from April 24 to May 1, the amount of coins withdrawn totaled $1,199,522,307, as reported by Farside Investors and CoinGlass.
Fidelity’s FBTC Leads Outflows
Fidelity’s FBTC was the main flagship of the withdrawing movement, accounting for $191.1 million in redemptions. This move effectively kept FBTC at bay, allowing BlackRock’s IBIT to fill the gap and significantly mitigate the relatively higher outflows from Grayscale Bitcoin Trust (GBTC).
Powell’s Assurance Temporarily Boosts Bitcoin
An upsetting cryptocurrency market got some relief after Federal Reserve Chairman Jerome Powell’s assurance to not raise rates soon, which eventually led to a minor bounce toward bitcoin prices. And while there is a string of U.S.-based BTC ETFs exiting at the moment, Fed Powell’s ‘dovish‘ stance broadly with regard to increased economic growth and employment and trimmed supply during the time of crisis offered assistance to risky asset portfolios, including bitcoin.
Fed Stands Firm on Rates, Announces QT Curtailment
Instead, the BoC kept the policy rate steady, citing the economy’s performance as the primary reason. Powell’s comments during this press briefing do not align with the impending rate hikes previously announced by other officials to combat inflation, thereby alleviating fears sparked by recent data.
The Fed has also announced the reduction of the QT plan, scheduled to begin in June and executed in two phases. At the same time, the U.S. Treasury announced it had its first repurchase of debt in decades and cited it as supporting liquidity in the bond market.
Bitcoin’s Volatility Amid Liquidity Concerns
Similar to other risk assets, bitcoin experienced volatility as a result of shifting liquidity expectations. Following Powell’s statement, the cryptocurrency BTC experienced a significant increase, rising from $56,620 to $59,430. Nonetheless, the impressive surge brought short-lived relief, as the price quickly corrected to $57,300 at the time of reporting.
Global ETF Debuts Marred by Lackluster Volumes
The lack of fresh trade volume in Hong Kong, when Asia’s first spot bitcoin and ether ETFs hit the market this week, further widened the scope of fear in the crypto space. Such a general lack of support further bad-motored the downward mood, adding to the setback that bitcoin faced against the variable liquidity dynamics.