Bitcoin ETF net outflows surpass $200 million ahead of the FOMC meeting.

The U.S. spot Bitcoin ETF recorded a net outflow of $200 million on June 11, the highest net outflow in a single trading day since May 1, when net outflow reached $564 million.

Grayscale Bitcoin Trust (GBTC) had the highest net outflow at $121 million, while Ark Invest and 21Shares’ ETF ARKB recorded a net outflow of $56 million on the same day.

In particular, GBTC’s net outflow on June 11th shrank by about $8 million from the previous outflow, which exceeded $113 million for three consecutive trading days.

As of this writing, the price of Bitcoin is currently at $67,449 after falling as low as $66,207 over the past 24 hours, according to CoinGecko. The decline resulted in the liquidation of at least $245 million worth of long-term contracts yesterday.

Investors are likely to remain cautious ahead of the important Federal Open Market Committee (FOMC) meeting, where Federal Reserve Chairman Jerome Powell is expected to announce the committee’s decision on interest rates.

According to the CME FedWatch Tool, market participants are not expecting rates to change, with 99.4% of investors expecting rates to remain in the current range of 525 to 550 bps.

Interest rates may remain unchanged, but Powell’s comments will play a big role in how markets react. Taking a dovish stance is likely to cause risky asset prices to soar, while a hawkish stance is likely to further weaken investor confidence.

Another factor that may surprise investors is the US Consumer Price Index (CPI) report, which is also scheduled to be released later today. A higher-than-expected CPI print is likely to delay the rate cut. The FOMC said it would closely watch core CPI, which was reported at 3.4% in April. This shows that inflation is slowing, but is still well above the Fed’s 2% target.

Last month, European digital asset manager CoinShares shared a report stating that Bitcoin’s price movements are largely dependent on the actions of the Federal Reserve.

By and large, cryptocurrency investors have been hoping for a rate cut from the Federal Reserve. Historically, lower interest rates have made riskier assets like stocks and cryptocurrencies more attractive to investors.

But now the demand for lower interest rates has created strange bedfellows.

Senator Elizabeth Warren, who has become known for her anti-cryptocurrency rhetoric, teamed up with Senators Jackie Rosen and John Hickenlooper to write a letter to Jerome Powell asking him to lower interest rates. They argue that rising interest rates have a negative impact on the U.S. economy.

“The Fed’s monetary policy is not helping to reduce inflation. “In reality, it threatens the health of the economy by increasing the cost of home and auto insurance, two of the leading causes of inflation, and risks a recession that could put thousands of American workers out of work,” he wrote. “You’ve kept interest rates too high for too long. “Now is the time to cut interest rates.”

Edited by Stacey Elliott.