Bitcoin exchange-traded funds pulled in $128 million in daily inflows, the strongest single-day showing in weeks, as traders turn their attention to the Federal Reserve's upcoming interest rate decision. Bitcoin is trading near $65,000, holding steady ahead of what markets expect to be a hold on rates.
ETF inflows pick up
The $128 million figure marks a notable uptick from the subdued pace seen earlier this month. While the flows are still a far cry from the blockbuster days of early 2026, the pickup suggests institutional appetite hasn't vanished — it's just waiting for a catalyst. The inflows come as several large asset managers have been quietly adding to their bitcoin positions, according to recent filings. The money flowed into a mix of spot and futures-based products, with the bulk going to the largest funds by assets under management.
Fed decision in focus
All eyes are on the Federal Open Market Committee, which wraps up its two-day meeting on Wednesday. Markets are pricing in a 95% probability that the Fed will hold rates steady, according to CME FedWatch data. That would be a relief for risk assets, including crypto, which have been sensitive to rate expectations all year.
A hold would also keep the pressure on the Fed to signal its next move. Traders are parsing every word from Chair Jerome Powell's press conference for hints about September. The central bank has been walking a tightrope between taming inflation and avoiding a recession, and any shift in tone could move markets fast. The 95% probability is about as close to a sure thing as markets get, but the real action is in the forward guidance.
What traders are watching
Beyond the rate decision, the market is watching for any commentary on the Fed's balance sheet runoff and its stance on digital assets. The SEC's recent approval of ether ETFs has also kept crypto in the regulatory spotlight, though the bitcoin ETF flows suggest investors are still most comfortable with the original cryptocurrency.
The next few days will be telling. If the Fed holds and signals a dovish tilt, bitcoin could test resistance above $66,000. If it surprises with a hawkish stance, the $60,000 support level could come into play. For now, the market is holding its breath. The decision lands Wednesday afternoon, and the crypto world will be watching.
