The U.S. spot Bitcoin exchange-traded funds observed a significant shift this week with net outflows of $200 million on Tuesday, marking a contrast to a previous streak of consecutive net inflows. Notably, Grayscale's GBTC experienced the largest reduction of $121 million, followed by ARKB with $56 million and BITB with $12 million in outflows. Fidelity and VanEck also reported minor outflows. This trend reversal, following a period of robust inflows totaling $15.42 billion since January, has raised concerns among investors regarding its market implications.

Simultaneously, the market is anticipating the release of key economic data in the U.S. this week, with focus on the upcoming FOMC meeting and consumer price index (CPI) report. Analysts predict a minimal 0.1% rise in CPI from April, indicating a continued disinflationary trend that could influence future Federal Reserve policies. Market expectations suggest a likelihood of interest rates remaining unchanged at the current level of 5.25% to 5.50%, aligning with a 99.4% forecast by the CME Group.

Contrary to these expectations, a Reuters poll of economists forecasts potential rate cuts by the Fed as early as September, with two cuts expected by the end of the year. These macroeconomic factors have led to market fluctuations, including in the cryptocurrency sector, with Bitcoin's price currently at $67,500, slightly lower than the recent $71,850 peak. This price movement reflects investors' risk sentiment amid uncertainties surrounding future economic policies and their impact on asset valuations.