Bitcoin Struggles to Hold Ground as US Spot ETF Weekly Outflows Reach $1.8B and Rate Hike Expectations Rise

Bitcoin is currently hovering around the critical $60,000 price level, fighting to maintain key support as a wave of negative market forces converge. Over the past week, US-based spot Bitcoin exchange-traded funds have recorded a staggering $1.79 billion in net outflows, signaling a notable pullback in institutional appetite for the leading cryptocurrency.

The timing of these outflows coincides with growing concerns among investors about the Federal Reserve's monetary policy trajectory. Market analysts are increasingly pricing in the possibility of additional interest rate hikes, a scenario that historically puts downward pressure on risk assets including cryptocurrencies. Higher borrowing costs tend to reduce liquidity in speculative markets, making assets like Bitcoin less attractive compared to yield-bearing instruments.

Adding to the bearish pressure, a broader sell-off in artificial intelligence-related stocks has rattled investor confidence across technology and digital asset markets. The AI sector, which had been a major driver of market optimism throughout the year, experienced a sharp correction that spilled over into crypto trading sentiment. This dual headwind — tightening monetary policy expectations combined with a tech sector pullback — has created a challenging environment for Bitcoin bulls.

Despite the turbulence, Bitcoin has so far managed to cling to the $60,000 support zone, a level that many technical analysts consider psychologically and structurally significant. A sustained break below this threshold could open the door to further downside, while a successful defense might attract renewed buying interest from both retail and institutional participants.

Analysts are closely watching the interplay between macroeconomic signals and on-chain data to gauge whether the current consolidation represents a temporary dip or the beginning of a more prolonged correction. The coming weeks are expected to be decisive, particularly as fresh economic data and Federal Reserve communications could either amplify or ease the current rate hike concerns.

For now, Bitcoin remains at a crossroads, with the $1.79 billion in ETF outflows serving as a stark reminder of how quickly market sentiment can shift when macro uncertainty takes center stage.