The Federal Reserve’s mixed signals on interest rates have left crypto traders guessing, but Wall Street investors appear willing to test the waters again.
Chair Jerome Powell described last week’s 25-basis-point cut as a precaution for a weakening labor market, stressing that policymakers were not aligned on deeper easing. His tone suggested patience: cutting too quickly risks reigniting inflation, waiting too long risks higher unemployment. That message has kept markets stuck in limbo, with both stocks and crypto trading nervously around key levels.
Investors Step Back In
Despite the uncertainty, U.S. spot Bitcoin funds registered inflows of about $241 million on Wednesday. BlackRock’s iShares Bitcoin Trust led with $129 million, offsetting nearly half a billion in outflows from earlier in the week. The move suggests institutional players are still willing to buy weakness, especially heading into a historically bullish fourth quarter.
Ethereum products, however, saw withdrawals accelerate. Net outflows of $79 million on Wednesday marked a third straight day of redemptions as ETH slipped toward the $4,000 line.
Key Levels in Focus
Price action has yet to reward the renewed inflows. Bitcoin hovered just above $111,800 on Thursday, trapped beneath resistance near $113,500. Analysts at BRN Research said a break higher could open $115,000, while a failure would risk revisiting $105,000 or even $90,000. Ethereum’s footing at $4,000 remains fragile, with downside targets at $3,800–$3,600 if support fails.
A Market of “Maybes”
Timothy Misir of BRN described the setup as a “market of maybes”: maybe ETF flows stabilize, maybe support levels hold, maybe the Fed cuts again this year. Until one of those “maybes” becomes certain, both Bitcoin and Ethereum appear destined to churn sideways, caught between cautious optimism on Wall Street and macro headwinds from Washington.
