Cryptocurrency investment products experienced another challenging week, with outflows amounting to $726 million, according to a recent report by CoinShares.
Following previous repeated weekly outflows, crypto investment products have matched the largest recorded outflow set since March 2024, CoinShares’ head of research, James Butterfill, <a data-ct-non-breakable="null" href="https://blog.coinshares.com/volume-199-digital-asset-fund-flows-weekly-report-a03547e1f95d" rel="noopener noreferrer nofollow" target="_blank" text="null" title="https://blog.coinshares.com/volume-199-digital-asset-fund-flows-weekly-report-a03547e1f95d">wrote</a> in the latest “Digital Asset Fund Flows Weekly Report” released on Sept. 9.
As previously mentioned by CoinShares, crypto products <a data-ct-non-breakable="null" href="https://etp.coinshares.com/knowledge/market-activity/fund-flows-25-03-24" rel="noopener noreferrer nofollow" target="_blank" text="null" title="https://etp.coinshares.com/knowledge/market-activity/fund-flows-25-03-24">saw</a> record weekly outflows during the week from March 17 to March 23, shedding a total of $942 million.
 
 
<figure><img alt="Crypto products post $726M outflows amid rate cut uncertainty" name="" src="https://s3.cointelegraph.com/uploads/2024-09/0191d6e3-bdb0-7045-9fa5-9c2cd538bd4c">
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 Weekly crypto asset flows. Source: CoinShares
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In the past week, Bitcoin (<a data-ct-non-breakable="null" href="https://cointelegraph.com/bitcoin-price" rel="noopener noreferrer nofollow" target="_self" text="null" title="https://cointelegraph.com/bitcoin-price">BTC</a>)-based crypto investment products saw outflows totaling $643 million. Ether (<a data-ct-non-breakable="null" href="https://cointelegraph.com/ethereum-price" rel="noopener noreferrer nofollow" target="_self" text="null" title="https://cointelegraph.com/ethereum-price">ETH</a>) saw outflows totaling $98 million, while Solana (<a data-ct-non-breakable="null" href="https://cointelegraph.com/solana-price-index" rel="noopener noreferrer nofollow" target="_self" text="null" title="https://cointelegraph.com/solana-price-index">SOL</a>) saw the largest inflows of any asset, totaling $6.2 million.
<h3 id="strong-potential-25-bp-interest-rate-cut-versus-50-bp-cut-impact-on-the-crypto-market-strong">Potential 25-bp interest rate cut versus 50-bp cut: Impact on the crypto market</h3>
The ongoing selling pressure comes in line with the negative sentiment driven by <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/crypto-305-million-outflow-us-economic-data" rel="noopener noreferrer nofollow" target="_self" text="null" title="https://cointelegraph.com/news/crypto-305-million-outflow-us-economic-data">stronger-than-expected macroeconomic data</a> in the United States from the previous week, which increased the likelihood of a 25-basis-point (bp) interest rate cut.
Daily outflows subsequently slowed amid the weak US employment data, which triggered anticipation that the US Federal Reserve would opt for a potential 50 bp rate cut.
“The markets are now awaiting Tuesday’s Consumer Price Index inflation report, with a 50 bp cut more likely if inflation comes in below expectations,” Butterfill wrote.
According to 21Shares analyst Leena ElDeeb, the recent US labor market results acted as a “moment of truth” for risk-on assets like Bitcoin.
“A rate cut bodes well for risk-on assets which have historically enjoyed the expansion of the investor appetite as borrowing costs decrease,” ElDeeb told Cointelegraph, adding that other catalysts may point for Bitcoin’s potential breakout.
Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/bitcoin-etfs-1-2-billion-outflows-8-days" rel="noopener noreferrer nofollow" target="null" text="null" title="null">Bitcoin ETFs record combined $1.2B in outflows in 8 days</a>
One such catalyst is global central bank liquidity, measured by M2. “Historically, Bitcoin tends to bottom out shortly before global M2 reaches its low, followed by a rapid price surge that often outpaces liquidity growth,” ElDeeb stated. 
<figure><img alt="Crypto products post $726M outflows amid rate cut uncertainty" name="" src="https://s3.cointelegraph.com/uploads/2024-09/0191d6e3-12d6-7f65-8b52-2d535ed292e9">
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 Bitcoin price vs. global liquidity (M2). Source: <a data-ct-non-breakable="null" href="https://www.bitcoinmagazinepro.com/charts/global-liquidity/" rel="noopener noreferrer nofollow" target="_blank" text="null" title="https://www.bitcoinmagazinepro.com/charts/global-liquidity/">Bitcoin Magazine Pro</a>
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<h3 id="strong-coinbase-posted-worst-week-in-2024-as-crypto-stocks-tumble-strong">Coinbase posted worst week in 2024 as crypto stocks tumble&nbsp;&nbsp;</h3>
Apart from the massive selling of crypto products, the ongoing sell-off in crypto can also be seen in the crypto stock market.
According to a report by CNBC, Coinbase (COIN) shares <a data-ct-non-breakable="null" href="https://www.cnbc.com/2024/09/06/coinbase-marathon-digital-riot-platforms-lead-drop-in-crypto-stocks.html" rel="noopener noreferrer nofollow" target="null" text="null" title="null">posted</a> their worst week in 2024, with the stock plummeting to its lowest value since February. According to data from TradingView, COIN closed at $147 on Sept. 6. The stock is down around 14% year-to-date. 
<figure><img alt="Crypto products post $726M outflows amid rate cut uncertainty" name="" src="https://s3.cointelegraph.com/uploads/2024-09/0191d6e2-b282-7f60-99c4-f1157ac37b1e">
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 Coinbase price chart year-to-date. Source: TradingView
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According to CNBC, several major Bitcoin mining companies also ended the week with double-digit drops, led by CleanSpark’s 24% decline.
Magazine: <a data-ct-non-breakable="null" href="https://cointelegraph.com/magazine/parents-addicted-pi-network-crypto-tapper/" rel="noopener noreferrer nofollow" target="null" text="null" title="null">Help! My parents are addicted to Pi Network crypto tapper</a>

Crypto products post $726M outflows amid rate cut uncertainty

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