Bitcoin Weekly Outlook: $462.7 Million Flows Out of ETFs as Caution Builds Ahead of US, UK and Japan Policy Decisions

Digital FinanceMacroDigital Finance
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Summary · why it matters

Bitcoin fell 3.8% last week, and US spot bitcoin ETFs saw a net outflow of $462.7 million over four trading days. This week brings a string of policy decisions from the US Federal Reserve, the Bank of England and the Bank of Japan, which could create a tough macro environment for risk assets. The market broadly expects a 0.25-point rate hike at the US Federal Open Market Committee meeting on September 16, with CME's FedWatch putting the probability of a hike at 87.5%. The Bank of England is expected to hold its policy rate at 3.75% on September 17, while the Monetary Policy Committee is seen splitting 6 to 3 in the vote. Expectations are growing that the Bank of Japan will raise its policy rate by 0.25 point to 1.25% on Friday, which if realized would be the highest level since April 1995. The market capitalization of stablecoins rose about 0.6% from $307 billion at the start of the month to $309 billion as of September 13, while bitcoin's market share has fallen about 2% since September 4. BTC was trading at around $77,200 as of September 13, and $76,000, the midpoint of the bullish candle formed with volume on August 21, will be a key support line this week.

Impact on stocks 3

Others · 3 stocks
Japan Government Bond 10Y
JP-10Y
▲ PositiveMonetaryrelevance

Growing expectations that the Bank of Japan will raise its policy rate 0.25 point to 1.25% on Friday push JGB yields up.

UK Government Bond 10Y
GB-10Y
± MixedMonetaryrelevance

Bank of England expected to hold its policy rate at 3.75% on September 17, with the MPC seen splitting 6-3, leaving the gilt yield direction unclear.

Theme Impact 4

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