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BTC ETF Inflows Reverse as Fed’s Hawkish Outlook Triggers Market Caution
Crypto Trends

BTC ETF Inflows Reverse as Fed’s Hawkish Outlook Triggers Market Caution

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Spot bitcoin BTC$117,347.57 ETFs saw their first daily outflows in over a week on Wednesday, shedding a net $51.28 million, as investors reacted to the Federal Reserve’s unexpectedly cautious outlook on future policy.

The outflow broke a seven-day streak that had brought in nearly $3 billion. Assets under management remain above $150 billion, according to SoSoValue data, but the tone in markets shifted after Fed Chair Jerome Powell emphasized economic uncertainty and signaled fewer cuts ahead than traders had hoped.

As expected, the Fed lowered its benchmark rate by 25 basis points, bringing it to a range of 4.00% to 4.25%, in its first cut of the year. But the real surprise came from the central bank’s updated projections, which indicated just two more cuts in 2025 and fewer in 2026 than markets had priced in.

In a cautious press conference, Powell warned of “elevated” inflation and rising “downside risks” to employment, striking a tone that left traders wary. Markets interpreted the move as a hawkish cut, triggering a mild pullback in risk assets.

Ethereum ETFs also saw redemptions, with net outflows for a second straight day. Withdrawals amounted to $1.89 million following the exit of $61.7 million the day before.

Cryptocurrency prices edged higher. Bitcoin rose around 0.3% in the last 24 hours while ether moved up 1.7%. The broader CoinDesk 20 (CD20) index rose 2%.



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Why is the crypto market going up today? (Aug. 27)
GameFi Guides

Figure stock pops after IPO, but Klarna, Circle, Bullish crash call for caution

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Figure stock price surged by over 44% after its initial public offering, pushing its market capitalization to over $7.8 billion.

Summary

  • Figure Technology stock price jumped after its IPO.
  • The company’s market cap jumped to $7.8 billion. 
  • Recent IPOed companies like Klarna, Circle, and Bullish have erased initial gains.

Figure stock jumps after IPO

Figure Technologies shares were trading at $32 at press time, down from the intraday high of $36. This followed the company raising $787 million in the closely watched FIGR IPO.

Figure’s IPO is another major win for the cryptocurrency industry. It joins companies such as Circle and Bullish, which have raised millions of dollars this year by going public. Gemini, the crypto exchange owned by the Winklevoss twins, will go public on September 12.

Figure Technology’s core business is in the home equity lending industry, where it facilitated over $6 billion in loans in the first six months of the year. According to its S1 filing, the company’s revenue for the first six months of the year rose to $190 million from $156 million in 2024. Its revenue in 2024 was $340 million, up from $209 million the previous year. 

Most of its revenue came from the gains on the sale of loans followed by interest income and origination fees. Figure is profitable, generating a net income of $29 million in the first six months of the year. 

Klarna, Circle, and Bullish stock have crashed after the initial pop

The main risk that the Figure stock faces is that recently, public companies have not sustained their initial gains. Circle stock price has plunged by 56% from its highest point this year. 

Bullish, while the stock initially jumped to $117 after the IPO, has plunged by 56% to $53. Klarna’s stock price has crashed from $57 on Wednesday to $43 today. 

The same happened among other companies that went public this year, like CoreWeave, eToro, and WeBull. WeBull, a rival to Robinhood, was the most extreme as it jumped from $10 to $80 a few days after it IPO and then plunged to $13 today. 

Stocks plunge after IPO as their initial momentum and hype eases and as some of the early investors sell. For example, Cathie Wood was one of the top sellers of Circle stock after its stock surged.

Therefore, there is a likelihood that the Figure stock price will crash in the next few days. 



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Traders Caution of 12% Drop as Lack of Catalysts Marr Sentiment
GameFi Guides

Traders Caution of 12% Drop as Lack of Catalysts Marr Sentiment

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Bitcoin’s (BTC) slide into September comes with an uncomfortable reminder for traders that history is not on their side.

The largest token by market capitalization has declined in nine of the last 14 September months, with an average monthly loss of around 12%.

This seasonality looms large again in 2025. Bitcoin opened the week near $110,000, its weakest level in nearly two months, and total crypto market capitalization has slipped to $3.74 trillion, reaching a three-week low.

BTC prices have been flat over the past 24 hours, with Solana’s SOL (SOL) leading gains at 4%, XRP XRP$2.8149 posting 1% and Cardano’s ADA (ADA) rising 1.5%.

Traders say the combination of macro uncertainty, fragile sentiment, and thinning volumes leaves little room for error heading into what has historically been the toughest month on the calendar.

The technicals don’t inspire much confidence either. Alex Kuptsikevich, chief market analyst at FxPro, noted that the broader capitalization chart “continues to record a series of lower lows, signaling a downward trend.”

He pointed to Bitcoin’s failure to hold $112,000 and warned of “further decline toward the $105,000 area,” a level that has long acted as support before the psychological $100,000 barrier.

The crypto fear index has slipped back toward 40, its lowest since April, suggesting nerves are rising before they’ve fully broken.

In 2017, bitcoin dropped nearly 8% in September despite the euphoric rally that carried it to $20,000 later that year. In 2019, the token lost almost 14% in September, foreshadowing months of sideways action.

Even in the latest cycle, September 2021 and 2022 both saw steep drawdowns, reminding traders that liquidity drains and macro jitters often coincide with the end of summer.

This year, those headwinds are visible in ETF flows. After steady accumulation through much of August, spot bitcoin ETFs in the U.S. recorded net outflows of $440 million last week.

Ether ETFs, which launched just last year, posted more than $1 billion in inflows, marking a rare bright spot but also a sign that capital may be rotating rather than growing overall.

Meanwhile, CryptoQuant data shows spot ETFs have now absorbed more than 1.3 million BTC, nearly 6% of total supply, putting them on par with the largest exchanges for market share.

The risk is that support levels break before macro relief arrives. Non-farm payrolls due Friday are expected to show just 45,000 new jobs, confirming a slowing U.S. labor market.

A soft print would strengthen the case for a September rate cut from the Fed, a catalyst that could flip sentiment back to risk-on. Until then, traders are paying up for downside hedges.

Options data shows the strongest demand for puts in weeks, with skew leaning firmly bearish, FxPro’s Kuptsikevich noted, calling for caution among intra-day traders.



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