White House statement impact: Bitcoin falls below $100,000, large amounts of funds flow out of ETF

Source: BTCHaber Original Title: The White House statement causes BTC to fall below 100,000 dollars again Original Link:

Uncertainty in U.S. Economic Data Triggers Market Volatility

Negative news from the US economy has triggered a massive sell-off in the stock and cryptocurrency markets, pushing Bitcoin below the psychological barrier of $100,000.

The price of the world's largest cryptocurrency BTC has reached $97,000, while the decline of major crypto assets has deepened. The price of Ether, the native token of the Ethereum network, has fallen back to $3,111.

Federal Reserve officials frequently release hawkish signals

The market volatility primarily stems from the hawkish statements of Federal Reserve officials. San Francisco Federal Reserve Bank President Mary Daly advocated for not rushing decisions at the December meeting and characterized the policy stance as neutral. Boston Federal Reserve Bank President Susan Collins emphasized the Federal Reserve's 2% inflation target, indicating support for maintaining interest rates at current levels in the short term.

Minneapolis Federal Reserve Bank President Neel Kashkari has taken a tougher stance, claiming that the Federal Reserve does not support the recent interest rate cut decision and expressed caution regarding the December meeting. Kashkari stated that, based on data performance, the Federal Reserve could justify both an interest rate cut and maintaining rates unchanged.

White House Statement Breaks Market Expectations

However, the actions and statements of Federal Reserve officials based on data have become ineffective due to the 45-day shutdown of the U.S. federal government. After budget negotiations between the Democrats and Republicans broke down, the federal government recently reopened. White House Press Secretary Karoline Leavitt announced at a press conference on Thursday: “Democrats may have caused permanent damage to the federal statistical system, and we believe that the inflation and employment data for October may never be released.” This statement became the last straw that broke the market's confidence.

The U.S. stock market is generally down.

After the news of the data release cancellation came out, the market anticipating a rate cut in December reacted fiercely. According to the predictions from the FedWatch tool, the probability of the Federal Reserve cutting rates in December dropped from 65% to 50%. The Nasdaq Composite Index fell by 1.8%, the S&P 500 Index fell by 1.6%, and the Dow Jones Industrial Average closed down by 1.65%.

Large Outflow of Funds from Bitcoin Spot ETF

The decline in the stock market directly transmitted to the cryptocurrency spot exchange traded fund ( ETF ). The total outflow of funds from the spot Bitcoin ETFs listed in the United States reached $896 million. According to SoSalue data, the fund outflow from Bitcoin ETFs in the past three weeks has reached $2.6 billion. In contrast, the outflow scale of the Ethereum ETF, which has recently attracted attention due to large purchases, is relatively low at $259 million.

Market Analyst's Perspective

Vincent Liu, Director of Investment at Kronos Research, commented: “The large outflows indicate that the market has entered a risk-off mode, with institutional investors choosing to retreat amid macro noise. This flow has suppressed momentum in the short term, but from a broader perspective, it has not harmed structural demand. These outflows are consistent with oversold conditions, opening up opportunities for long-term optimists.”

Min Jung, a research assistant at Presto Research, added: “This indicates a widespread reduction of risk across the market. Investors are pulling capital out of high-risk assets and shifting towards safe assets. This reflects uncertainty about the direction of Federal Reserve policy and deteriorating macro sentiment.”