Bitcoin investment funds attracted fresh capital on November 4 as BTC regained the $81,000 level, providing some relief after several sessions of heavy withdrawals. However, the outlook for Federal Reserve monetary easing has become less favorable after Goldman Sachs postponed its projected interest rate cuts. The bank now expects reductions in December 2026 and March 2027, citing persistent inflation pressures and a labor market that continues to show resilience.
U.S. spot Bitcoin ETFs recorded combined net inflows of $74.6 million, ending three consecutive sessions of capital outflows that had totaled approximately $1.16 billion. Fidelity’s FBTC led the recovery, although BlackRock’s IBIT continued to face substantial selling pressure.
Fidelity’s Wise Origin Bitcoin Fund attracted approximately $236.7 million in fresh investments on November 4. Bitwise’s BITB followed with $15.2 million in inflows, while ARK Invest’s ARKB secured another $19.9 million.
BlackRock’s iShares Bitcoin Trust recorded the largest withdrawals, losing $201.2 million during the session. This marked its fourth consecutive day of outflows, bringing the fund’s cumulative withdrawals over the period to approximately $935 million.
The contrasting performance highlights the uneven nature of institutional Bitcoin demand. Although several ETF providers attracted new investments, continued withdrawals from IBIT suggest that some investors remain cautious about increasing their exposure.
Bitcoin’s price action has also improved following its decline to approximately $75,600, its lowest level in seven weeks, during the November 3 election period. BTC subsequently rebounded above $81,000 as markets adjusted to the U.S. midterm election results. However, the recovery appears to have been influenced by several factors rather than one specific development.
Goldman Sachs Revises Fed Outlook as Bitcoin ETFs Return to Inflows
Goldman Sachs has adjusted its Federal Reserve projections, moving its anticipated interest rate reductions three months further into the future. The bank now expects the central bank to deliver its next cuts in December 2026 and March 2027.
The revised forecast reflects concerns about persistent inflation, particularly the possibility that higher energy expenses could keep core personal consumption expenditures (PCE) inflation near 3% throughout the year.
Goldman economist David Mericle suggested that additional evidence of declining inflation and a softer labor market would be needed before the Federal Reserve could justify an earlier rate reduction.
The bank has maintained its longer-term federal funds rate projection of 3% to 3.25%. However, Goldman also acknowledged that the Federal Reserve might avoid further cuts if economic growth and employment conditions remain stronger than expected.
Bank of America has taken an even more cautious approach by removing its anticipated 2026 rate cuts entirely. Its latest forecast places the beginning of the easing cycle in the third quarter of 2027.
The revised outlook could create additional headwinds for Bitcoin and other risk-sensitive assets. Lower interest rates generally reduce borrowing costs and improve financial liquidity, making investments such as cryptocurrencies more attractive. If monetary easing is postponed, investors may remain more selective about allocating capital to volatile markets.
Nevertheless, the return of positive Bitcoin ETF flows suggests that institutional demand has not disappeared despite the less supportive interest rate outlook. Fresh investments indicate that some market participants continue to view Bitcoin as an attractive asset even as expectations for monetary easing weaken.
This leaves Bitcoin facing two competing influences. Continued institutional accumulation could strengthen price support and help sustain the latest recovery. Conversely, persistent inflation and higher borrowing costs could restrict market liquidity and limit further gains.
For now, investors will be monitoring ETF flow data alongside upcoming inflation and employment reports. These indicators could provide important clues about the Federal Reserve’s next policy decisions and whether Bitcoin can maintain its recovery above $80,000.
