Bitcoin ETFs Bleed $65.4M as Hawkish Fed Talk Puts CPI in Focus
U.S. spot Bitcoin ETFs logged a $65.4 million outflow on October 12, all from BlackRock’s IBIT, while a hawkish Fed message set the stage for Wednesday’s September CPI report.
American crypto investors opened the week on the defensive. Fresh fund-flow data and a firm message from a Federal Reserve policymaker cooled sentiment, pushing Bitcoin briefly below $81,000 before buyers stepped back in and lifted it to roughly $83,000 by Tuesday morning in New York.
Spot Bitcoin ETFs Record Another Outflow
U.S.-listed spot Bitcoin exchange-traded funds posted a net outflow of $65.4 million on Monday, October 12, according to Farside and SoSoValue data. It was the fourth net outflow of October, and it followed a modest $21.1 million inflow on Friday. Even after the pullback, cumulative net inflows into the products remain above $57 billion, which shows how large the institutional base still is.
BlackRock's IBIT Accounts for the Entire Decline
The selling was concentrated in a single product. BlackRock's iShares Bitcoin Trust, ticker IBIT, accounted for the full $65.4 million outflow, while every other spot Bitcoin fund finished the session flat. A concentrated print like this can reflect a few large holders adjusting positions rather than a broad exit across issuers, although one session is too small a sample to define a trend.
Ether Funds Extend Their Losing Streak
Spot Ether ETFs fared worse. They lost $85.4 million on the same day, marking an eighth straight session of net outflows, while cumulative inflows for the group still stand near $13.2 billion. Ether traded around $2,490 on Tuesday morning after starting the day near $2,444.
Hawkish Message From the Cleveland Fed
The macro backdrop added pressure. In remarks and a media interview on Monday, Cleveland Fed President Beth Hammack said a restrictive policy stance is needed for inflation to return to 2% in a timely way. She pointed to demand linked to artificial intelligence investment and household wealth effects as factors supporting prices, and said she would rather make smaller adjustments relatively quickly than wait and deliver a larger correction later. She also said she is keeping an open mind about the Fed's October 27–28 meeting.
Her comments carry weight. The Fed raised its benchmark rate by 25 basis points to a range of 3.75%–4.00% on September 16, its first increase since July 2023, and the vote was unanimous. Hammack had already voted in favor of a hike at the July meeting, when the committee held rates steady.
Why Wednesday's CPI Report Matters
Markets currently price a high probability that the Fed holds steady in October, with a greater chance of another move in December. That makes the September Consumer Price Index, due Wednesday, October 14, at 8:30 a.m. Eastern Time, the next major test. A softer reading could ease fears of further tightening and support risk assets, while a hot print would strengthen the case for more hikes, a scenario that has often weighed on risk assets such as Bitcoin.
What Traders Are Watching Next
Beyond inflation data, investors will track whether ETF flows turn positive again. A return to steady inflows would suggest October's softness is a pause rather than a shift in demand. Big-bank earnings, including reports from JPMorgan Chase and Goldman Sachs, and further Fed commentary this week may also influence risk appetite. For now, Bitcoin's quick recovery from the sub-$81,000 dip shows spot buyers are still active, but conviction remains tied to the macro calendar.
This article is for informational purposes only and is not financial advice. Crypto assets are highly volatile, so do your own research before making decisions.
