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Fed Cuts 25 Basis Points as Bitcoin Trades Steady, ETF Demand Tightens Supply

Record fund holdings plus scarce new supply are tightening Bitcoin’s float, with volatility still subdued.

Overview

  • Policymakers lowered the federal funds rate by 25 basis points in an 11–1 vote, and Bitcoin slipped about 0.7% to roughly $115,500 in a muted, largely priced‑in reaction.
  • U.S. spot Bitcoin ETFs notched a seven‑day inflow streak near $2.9 billion, with Sept. 16 adding about $292 million and combined holdings reaching a new peak of roughly 1.32 million BTC.
  • CoinShares reported $3.3 billion of digital asset inflows last week, lifting sector AuM to $239 billion, with Bitcoin drawing $2.4 billion and Ethereum returning to net inflows.
  • ETF accumulation over the past month totaled about 22,853 BTC, outpacing new issuance of roughly 14,056 BTC and reinforcing a supply‑demand imbalance.
  • On‑chain data show exchange deposits at a one‑year low and rising stablecoin balances, while decade‑old whale wallets reactivated, including a 1,000 BTC move tracked by Arkham.