What is the impact of FOMC meeting on crypto ETFs and bitcoin price?

**Unraveling the Impact of FOMC Meeting on Crypto ETFs and Bitcoin’s Trajectory**

**Bitcoin’s Dip Amidst ETF Outflows**

Bitcoin has taken a hit, falling below $60,000 and losing over 8% in the past week. This decline coincides with the second consecutive week of outflows from crypto investment products, including those tied to bitcoin ETFs.

“Continued pessimism over the number of rate cuts is weighing on sentiment for crypto,” said James Butterfill, head of research at CoinShares, an asset manager focused on cryptocurrencies.

**FOMC’s Influence on Investor Sentiment**

The recent Federal Open Market Committee (FOMC) meeting has cast a shadow over crypto markets. The Fed’s indication that further evidence of falling inflation is needed before any potential rate cuts has sparked uncertainty among investors.

“Any macro say that highlights inflation continues to fall will likely support prices, and conversely, an inflationary date will weigh on prices,” Butterfill added.

**Long Liquidations Force Asset Sales**

Data from CoinGlass shows a surge in long liquidations of bitcoin, which occurs when traders are compelled to sell their assets at market price to offset debts. This has also contributed to the downward pressure on Bitcoin’s value.

**Ether’s Fall and Broader Market Decline**

Ether, the second-largest cryptocurrency, has also suffered losses, dipping by nearly 6%. Other cryptocurrencies, such as Solana, XRP, and Dogecoin, have also faced downturns. Equities related to the crypto industry, including Coinbase and MicroStrategy, have declined over 5%.

**Bitcoin’s Path Forward Amidst Volatility**

Analysts believe that bitcoin could continue its descent due to a lack of bullish momentum. However, the long-term outlook remains positive. Ryan Rasmussen, an analyst at Bitwise Asset Management, highlights bitcoin’s strong year-to-date performance and the growing acceptance of cryptocurrencies.

“From a long-term investment thesis, bitcoin has rarely been more attractive than it is right now,” Rasmussen said.

**Conclusion**

The FOMC meeting has impacted the crypto market, contributing to outflows from ETFs and investor jitters. Bitcoin has fallen below $60,000, fueled by long liquidations and a lack of bullish sentiment. However, experts remain optimistic about bitcoin’s future potential, emphasizing its long-term growth and increasing acceptance.