Bitcoin fund flows show investors trading Fed rate path, not exiting market: CoinShares

Written by Sam Bourgistaff writerReviewed by Robert Lakinstaff editorWritten by Sam Bourgistaff writerReviewed by Robert Lakinstaff editorBitcoin fund flows show investors trading Fed rate path, not exiting market: CoinSharesMarketsPublishedSep 7, 2026Bitcoin’s struggle to break $80,000 comes as markets price in a growing chance of a September rate hike, putting monetary conditions back in focus. Crypto fund flows are becoming increasingly sensitive to changes in the US interest-rate outlook, with CoinShares arguing that Federal Reserve policy remains a key barrier to Bitcoin (BTC) breaking above $80,000 despite continued investor demand for crypto.In his latest market update, CoinShares head of research James Butterfil argued that “Bitcoin is trading like gold again, but the Fed still sets the ceiling” at around $80,000.That sensitivity was evident after Fed Chair Kevin Warsh’s speech at Jackson Hole. Warsh said progress on inflation had been modest and that price pressures were not easing quickly enough to give the central bank’s policy makers the confidence inflation was returning to its 2% target. Roughly $100 million exited digital asset investment products immediately after the speech, as markets sharply increased the probability of a September rate hike.Flows reversed over the following week, reaching $1 billion by Sept. 4. The turnaround coincided with comments from Fed Governor Christopher Waller, who pointed to recent signs of “disinflation” and said he was inclined to keep rates steady in September if upcoming inflation data showed further progress.“Investors are not exiting the asset class,” Butterfill wrote. “They are trading the rate path.”As of Monday, Fed Funds futures prices implied a roughly 60% chance of a rate hike following next week’s Federal Open Market Committee (FOMC) meeting, according to CME Group.Markets are now pricing in a 25 basis-point rate hike on Sept. 16. Source: CME GroupThe movements suggest that Bitcoin and broader digital as…

Bitcoin fund flows show investors trading Fed rate path, not exiting market: CoinShares

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