The crypto market's recent surge, fueled by hopes of rate cuts, has hit a snag. Bitcoin and Ether ETFs, once the driving force behind the rally, are now facing a significant setback. These funds, which had been attracting institutional interest, experienced outflows totaling $111 million, with Bitcoin funds losing $82 million and Ether funds shedding $29 million. This shift in sentiment is largely attributed to the Federal Reserve's hawkish stance, which has shifted the odds of rate cuts to hikes. The market's reaction is understandable: the peace deal that initially eased inflation fears has now been replaced by a Fed leaning towards hikes, leaving crypto in a tricky position. The question remains: will the ETF bid return, or will the market continue to face headwinds? The next few months will be crucial in determining the fate of the crypto market's recent recovery.
