Bitcoin, Ethereum ETFs Shed Nearly All 2026 Gains as Rate Cut Hopes Fade

Market Overview - Bitcoin and Ethereum ETFs have experienced significant outflows, losing $1.3 billion of their $1.5 billion worth of inflows since the beginning of the year, primarily during a four-day losing streak [1] - Over the last week, $454 million worth of assets have exited crypto exchange-traded products [1] Bitcoin Sentiment - Bitcoin faced the most negative sentiment, with $405 million in outflows last week, while short-Bitcoin funds saw $9.2 million in outflows, indicating mixed market signals [2] - Bitcoin's recent trading price was $91,722, reflecting a 1% gain in the past day [2] Federal Reserve Influence - The shift in market sentiment is attributed to lower expectations for a Federal Reserve rate cut in March, with a 95% chance that rates will remain unchanged at the next FOMC meeting on January 27-28 [3] - A week prior, futures data suggested a 44% chance of a rate cut in March, which has now decreased to 26.2% [4] Altcoin Performance - Despite the outflows from Bitcoin and Ethereum, altcoin products have seen positive inflows, with XRP, Solana, and Sui attracting $45.8 million, $32.8 million, and $7.6 million respectively [5][6] - At the time of reporting, XRP and Sui had each lost just under 1% in the past day, trading at $2.07 and $1.80, while Solana gained 2.2%, trading around $142 [6]