Bitcoin ETF capital inflow turns positive, BTC price rebounds to over $92,000.

The US spot Bitcoin exchange-traded fund (ETF) resumed net inflows on Wednesday, ending five consecutive days of outflows. According to SoSoValue data, the Bitcoin fund saw a net inflow of $75.47 million yesterday, with $60.61 million flowing into BlackRock's IBIT and $53.84 million into Grayscale's Mini Bitcoin Trust. IBIT had just experienced a record net outflow of $523 million on Tuesday, the largest single-day outflow since the fund's inception.

The net inflow from yesterday was offset by two funds with net outflows. Fidelity's FBTC recorded an outflow of $21.35 million, while VanEck's HODL had an outflow of $17.63 million.

From November 12 to 18, a consecutive five-day net outflow resulted in over $2.26 billion in outflows from Bitcoin ETF funds. This negative fund flow aligns with the overall decline of the cryptocurrency market, as Bitcoin's price recently fell below $90,000 after reaching a historical high of over $126,000 a few weeks ago.

Vincent Liu, Chief Investment Officer of Kronos Research, stated earlier on Wednesday that the outflow of ETF funds is a sign of institutions readjusting their strategies rather than capitulating, and predicted that once macroeconomic signals become clearer, risk appetite will rebound quickly.

The Federal Reserve's interest rate decision in December continues to exacerbate uncertainty in the macroeconomy, and Chairman Jerome Powell's recent remarks have weakened traders' expectations for another rate cut next month.

The FedWatch tool from the Chicago Mercantile Exchange Group (CME Group) currently shows that the likelihood of the Federal Reserve cutting interest rates by 25 basis points next month is 33.8%, down from 48.9% earlier this week. Traders remain cautious, with the cryptocurrency fear and greed index reaching 11, indicating extreme fear in the market. (The Block)