Bitcoin Holds Above $77,000 as ETF Outflows Continue

Bitcoin remained above $77,000 as investors withdrew money from spot bitcoin exchange-traded funds for a second straight session and prepared for the Federal Reserve's FOMC policy vote later this week, a meeting that could be Fed Chair Jerome Powell's final one.

ETF providers reported net outflows across several funds, leaving overall flows negative and reducing near-term buying pressure in trading rooms. Despite those withdrawals, bitcoin's price held its level, and intraday trading ranges narrowed compared with recent volatile sessions.

The FOMC vote is scheduled for later this week. Investors are looking for guidance on interest rates and the Fed's policy path. Decisions on rates and forward guidance can affect expectations for risk assets and the U.S. dollar, which in turn can influence demand for bitcoin.

Spot bitcoin ETFs directly hold bitcoin and allow investors to gain exposure through brokerage accounts without owning coins outright. Market participants track fund flows daily as a measure of institutional and retail demand. When funds report outflows, trading desks may see lower liquidity and fewer large buy orders.

Traders and portfolio managers are watching the FOMC statement and Powell's remarks for signals on the rate path and the economic outlook. Any guidance that changes expectations for interest rates could prompt repositioning in bitcoin and other risk assets before or after the vote.

Background: Spot bitcoin ETFs were launched to provide a regulated route to hold bitcoin through brokerage accounts. Fund flows into and out of these products and central bank decisions are factors market participants monitor for their potential impact on price and trading volume.