Bitcoin Dips Below $97,000 Amid Concerns Over Fed Rate Cut — Spot BTC ETFs Record $870M In Outflows

• According to the CME Group’s FedWatch tool, about 52% of traders have priced in a rate cut, down from over 62% a day earlier.
• Minneapolis Fed President Neel Kashkari stated that he did not support the October rate cut, citing the U.S. economy’s resilience.
• According to SoSoValue data, spot Bitcoin exchange-traded funds logged net outflows of $870 million on Thursday, after $278 million in outflows a day earlier.

Bitcoin and other major cryptocurrencies dipped in early trading on Friday as hawkish commentary from Federal Reserve officials lowered rate-cut odds amid weak economic data from China.

The apex cryptocurrency declined over 6% to $96,968.88 at the time of writing, according to CoinMarketCap data, while Ethereum fell 10.2% to $3,170.08 and XRP was down 8% to $2.30. Among other tokens, Solana slipped 9.2%, and Dogecoin fell 7.2%.

Fed Rate Cut Bets Wane

The selloff came after Federal Reserve governors signaled that another rate cut in December is not a certainty, echoing Fed Chair Jerome Powell’s cautious comments in September. On Thursday, San Francisco Fed President Mary Daly stated that any decision on benchmark interest rates four weeks ahead of the Fed’s next meeting is "premature."

"I have an open mind, but I haven't made a final decision on what I think, and I'm looking forward to debating with my colleagues," Daly said in Dublin, Ireland. The Federal Open Market Committee is expected to meet on Dec. 9-10.

Separately, in a Bloomberg interview aired on Thursday, Minneapolis Fed President Neel Kashkari stated that he did not support the October rate cut, as the anecdotal evidence and data received in the run-up to the meeting underscored the economy’s resilience. Instead, he preferred a pause.

According to the CME Group’s FedWatch tool, about 52% of traders have priced in a rate cut, down from over 62% a day earlier. The Fed officials may also have to contend with the fact that the October jobs and inflation data may not be released due to the U.S. government shutdown.

Chinese Economy Shows Signs Of Slowdown

Separately, official data showed that economic activity in China got off to a slow start in October, raising concerns over growth in the world’s second-largest economy. According to Reuters News report, industrial output rose 4.9% year-on-year in October, the weakest annual pace since August 2024, compared with a 6.5% rise in September. It also missed a 5.5% increase forecast in a Reuters poll.

Retail sales, a key metric for consumption, rose 2.9% last month, their worst pace since August last year, and slowed slightly from a 3% rise in September. It, however, came just ahead of estimates of 2.8%.

What Are Stocktwits Users Saying?

Retail sentiment on Stocktwits about Bitcoin moved to ‘neutral’ from ‘bullish’ a day ago.

“Finally feeling concerned now. Won’t go as far as saying we’re done, but this price action really isn’t good,” one user said.

Investors Flee Bitcoin, Ethereum ETFs

According to SoSoValue data, spot Bitcoin exchange-traded funds logged net outflows of $870 million on Thursday, after $278 million in outflows a day earlier. Spot Ethereum ETFs record net outflows of nearly $260 million.

On Thursday, Michael Saylor’s Strategy fell 7.1%, while Bitcoin miners IREN, Mara Holdings, and Cipher Mining fell between 11% and 14%.

Also See: Oil Prices Gain After Ukrainian Attack On Russian Oil Depot — Goldman Sachs Grows More Bullish On Long-Term Demand

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