Fed Hints May Fuel Crypto Rally as Bitcoin ETFs Lose $1B and Ethereum Shows Signs of Recovery; Figure Eyes IPO

  • Fed dovish remarks triggered risk-on rotation and a strong crypto rally.

  • Bitcoin ETFs lost roughly $1B across five days while Ethereum funds posted $288M in inflows.

  • Figure Technologies filed IPO paperwork; company cites $16B in home loans on its platform.

Bitcoin ETFs shed $1B as Fed dovishness fuels crypto rally; Ethereum rebounds—read analysis and next steps from COINOTAG. Stay informed and act smart.

What caused the crypto rally and the $1B outflow from Bitcoin ETFs?

Bitcoin ETFs briefly shed about $1 billion over five days as investors rotated into riskier assets after Federal Reserve Chair Jerome Powell signaled a potentially more dovish stance at Jackson Hole. The dovish commentary boosted equities and crypto, while short-term ETF flows reflected profit-taking and sector rotation.

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Ethereum funds posted $288 million in net deposits on Thursday, marking a clear divergence from Bitcoin ETF flows. Market participants cited stronger performance among infrastructure, DeFi, L1/L2 networks, and Web3 projects—areas highlighted in research notes from private equity firms such as M31 Capital. Institutional interest in staking and smart-contract activity supported Ethereum inflows.

Powell’s comment that the “shifting balance of risks may warrant adjusting our policy stance” opened the door to a potential rate cut, prompting investors to favor risk assets. Crypto and equities typically benefit when bond yields fall and capital rotates into higher-risk, higher-return sectors.

Stocks tied to crypto activity saw notable gains: Coinbase shares rose ~6%, Canaan jumped 12%, and miners such as Riot Platforms and Iris Energy moved higher by 7.7% and 9.3% respectively. Treasury-heavy Ethereum firms—BitMine Immersion and SharpLink—recorded double-digit increases, reflecting demand for on-chain exposure and treasury strategies.


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Source: https://en.coinotag.com/fed-hints-may-fuel-crypto-rally-as-bitcoin-etfs-lose-1b-and-ethereum-shows-signs-of-recovery-figure-eyes-ipo/