Ethereum’s price opened at $2,303 on April 28, its lowest in over a week, as cryptocurrency markets pulled back ahead of the U.S. Federal Reserve's interest rate decision on April 29.
"The defensive mood is reflected in exchange-traded fund flows, which saw spot Bitcoin ETFs register $263.2 million in net outflows this week," according to data from SoSoValue. Ethereum-specific ETFs also experienced $50.4 million in outflows during the same period.
The risk-off sentiment extends beyond Ethereum, with Bitcoin testing the $76,500 support level. The outflows mark a reversal after a nine-day streak of positive inflows, showing institutional players are moving to cash before the Federal Open Market Committee (FOMC) meeting concludes. The two-day meeting began April 28 in Washington.
While markets broadly expect the Fed to hold interest rates steady, any hawkish commentary in response to persistent inflation, which hovers near 4.7 percent, could extend losses for risk assets like Ethereum. A dovish surprise, however, could spark a relief rally, with traders eyeing the $96,600 level for Bitcoin as a potential target if bullish momentum returns.
The market anxiety is compounded by external factors, including tension in the Strait of Hormuz that has pushed Brent oil prices over $100 per barrel, intensifying inflation risks. This classic "flight to safety" is a typical defensive reaction from investors ahead of potentially market-moving macroeconomic data and policy announcements.
Despite the short-term bearish sentiment, some institutional players are preparing for the next cycle. T. Rowe Price, an asset manager with $1.71 trillion in assets, is finalizing the launch of its Active Crypto ETF (TKNZ). The fund’s prospectus notably includes not only Bitcoin and Solana but also XRP and the meme token Shiba Inu (SHIB), signaling a long-term institutional infrastructure build-out for a wider range of digital assets.
In a separate sign of life, Grayscale's Dogecoin fund (GDOG) recorded capital inflows after nine consecutive days of zero activity. The renewed interest comes as Dogecoin (DOGE) trades near the critical $0.10 level, a key psychological barrier for the asset.
This article is for informational purposes only and does not constitute investment advice.
