Bitcoin spot ETFs experienced net outflows on Tuesday after three consecutive days of inflows totaling over $1 billion. This shift in sentiment among institutional investors comes ahead of the US Federal Reserve’s policy meeting. With uncertainty surrounding the Fed’s decision, institutions seem to be reducing their exposure to BTC ETFs in anticipation of potential market volatility. This strategic move aims to avoid short-term losses in case of adverse policy signals or unexpected market reactions.

Although ETF outflows occurred, on-chain data indicates a spike in spot net inflows, suggesting that institutional players might be reallocating capital into direct spot positions to take advantage of short-term price fluctuations around the Fed’s announcement. The rise in BTC spot market accumulation could drive price appreciation if buying pressure remains high.

Bitcoin is currently trading at $96,679 with a 2% increase in the past day. The positive Balance of Power (BoP) indicator reflects growing spot buying activity before the FOMC meeting, indicating a bullish momentum in the market. If demand for BTC continues to rise, the price could potentially reach $102,080. However, in case of increased market volatility leading to a downside movement, BTC may drop from its recent highs, break support at $96,187, and decline to $92,048.