Ethereum

Solana

Bitcoin

James

According to data from CoinShares, crypto investment products are experiencing a notable shift in investors’ sentiment. During the past trading week, they recorded staggering net outflows of $726 million, the highest outflow seen since March 2024.
Bitcoin (BTC) saw the most outflow for the week, totaling $643 million, while short-bitcoin witnessed minor inflows of $3.9 million. This includes a whooping negative flow of $706 million seen by the 12 US <a href="https://cryptopotato.com/spot-bitcoin-etfs-extend-negative-streak-ethereum-etfs-back-in-red/" data-wpel-link="internal" rel="noopener noreferrer nofollow">spot Bitcoin ETFs</a> last week.
<h2 id="inflows-continue-to-dry-up">Inflows Continue to Dry Up</h2>
On the other hand, Ethereum saw smaller outflows of $98 million last week, mainly driven by the incumbent Grayscale Trust, while inflow from newly issued ETFs continues to dry up.
However, Solana saw the largest weekly inflows for any asset, totaling $6.2 million.
In terms of regional perspective, the US saw the largest outflows, totalling $721 million, followed by Canada, which saw smaller negative flows of $28 million. In contrast, Germany and Switzerland saw positive flows of $16.3 million and $3.2 million, respectively. This underscores investors’ positive sentiments in European countries.
<h2 id="rate-cut-uncertainty">Rate Cut Uncertainty</h2>
Analysts at CoinShares have attributed the negative flows seen in crypto investment products to uncertainty surrounding the Fed <a href="https://cryptopotato.com/fed-rate-cut-could-push-bitcoin-btc-to-45k-bitfinex-analysts/" data-wpel-link="internal" rel="noopener noreferrer nofollow">rate cut</a> in the coming week.
<blockquote>
 “We believe this negative sentiment was driven by stronger-than-expected macroeconomic data from the previous week, which increased the likelihood of a 25 basis point (bp) interest rate cut by the US Federal Reserve,” James Butterfill, CoinShares head of research <a href="https://blog.coinshares.com/volume-199-digital-asset-fund-flows-weekly-report-a03547e1f95d" data-wpel-link="external" target="_blank" rel="noopener noreferrer nofollow">said</a> in the report.
</blockquote>
The analyst, however, pointed out that there was a slowdown in daily outflows later in the week as the recently released US employment data fell below expectation—leaving market opinions on a potential 50bp rate cut “highly divided.”
<blockquote>
 “The markets are now awaiting Tuesday’s Consumer Price Index (CPI) inflation report, with a 50bp cut more likely if inflation comes in below expectations,” he added.
</blockquote>
At the time of filing this report, bitcoin was trading at 55,696, representing a 2.46% surge in the past 24 hours. Ether (ETH), on the other hand, trades at $2,314, marking a less than 2% increase on the day.
The post <a href="https://cryptopotato.com/crypto-investment-products-lost-726m-last-week-amid-rate-cut-uncertainty/" rel="noopener noreferrer nofollow">Crypto Investment Products Lost $726M Last Week Amid Rate Cut Uncertainty</a> appeared first on <a href="https://cryptopotato.com/" rel="noopener noreferrer nofollow">CryptoPotato</a>.

Crypto Investment Products Lost $726M Last Week Amid Rate Cut Uncertainty

Table of Contents

CryptoPotato_News

Other articles published on Sep 9, 2024

Binance Released Its New Reserve Report! Which Altcoins Are Available? Here's the Amount of Bitco...

ADA and BNB Prediction for September 9

Saviour Musk Will Surge 19,000% Before Exchange Listing, While Shiba Inu and DOGE Underperform

Overtake’s Somnis: Rumble Rush Surpasses 30,000 Registrations Just Three Weeks After Launch

Announcing the ZKcandy Voyage Public Testnet (9 Sep)

Will Ethereum Price Surge Before the Month Ends? A Comprehensive Analysis of Top Altcoins

Join our free newsletter for daily crypto updates!