U.S. spot Bitcoin ETFs saw net outflows of $200 million on June 11, the highest net outflows in a single trading day since May 1, when net outflows reached $564 million.

The Grayscale Bitcoin Trust (GBTC) saw the highest net outflows of $121 million, while Ark Invest and 21Shares’s ETF ARKB saw net outflows of $56 million on the same day.

Notably, GBTC’s net outflows on June 11 dwarfed its previous outflows, which exceeded $113 million across three consecutive trading days by approximately $8 million.

At the time of writing, the Bitcoin price is currently $67,449 after having dropped as low as $66,207 in the past 24 hours, according to CoinGecko. The drop triggered at least $245 million worth of long contracts to be liquidated yesterday.

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Investors are likely erring on the side of caution ahead of the crucial Federal Open Markets Committee (FOMC) meeting, after which Fed Chair Jerome Powell will announce the committee’s decision on interest rates.

Market participants are not expecting any change in interest rates, with 99.4% of investors predicting the interest rate to remain at the current level of 525-550 bps, according to the CME FedWatch Tool.

While interest rates might remain unchanged, Powell’s commentary will play a huge role in the way markets react. A dovish stance will likely see the price of risk assets soar, while a hawkish stance will further dampen investor confidence.

Another factor that is likely spooking investors is the U.S. Consumer Price Index (CPI) report, which too will be revealed later today. A higher-than-expected CPI print will likely delay interest rate cuts. The FOMC has said it will keep its eye sharply on the core CPI, which was last reported to be 3.4% in April—showing that inflation has been slowing down, but it is still well above the Fed’s 2% target.

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Last month, European digital asset manager CoinShares shared a report that indicated that the price action of Bitcoin is largely dictated by the actions taken by the Federal Reserve.

Broadly speaking, crypto investors have been hoping to see the Fed lower interest rates. It’s historically been the case that lower interest rates make risky assets, like stocks and cryptocurrencies, more appealing to investors.

But now the call for lower interest rates has made for strange bedfellows.

U.S. Sen. Elizabeth Warren—who has become famous for her anti-crypto rhetoric—has teamed up with Sens. Jacky Rosen and John Hickenlooper to pen a letter asking Jerome Powell to lower interest rates. In it, they claim that higher interest rates are having an adverse effect on the U.S. economy.

“The Fed’s monetary policy is not helping to reduce inflation. Indeed, it is driving up housing and auto insurance costs—two of the key drivers of inflation—threatening the health of the economy and risking a recession that could push thousands of American workers out of their jobs,” the wrote. “You have kept interest rates too high for too long: it is time to cut rates.”

Edited by Stacy Elliott.

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