Crypto asset investment products experience outflows totaling USD726M last week
Date
9/11/2024 9:02:57 AM
(MENAFN) According to a report released on Monday, crypto asset investment products experienced substantial outflows totaling USD726 million last week, marking the largest such amount since March. This significant outflow highlights a notable shift in investor sentiment within the digital asset market. The data, compiled by CoinShares, an asset management firm specializing in digital assets, indicates that Bitcoin was the primary contributor to these outflows, with a total of USD643 million withdrawn from Bitcoin investment products.
In addition to Bitcoin, Ethereum also saw considerable outflows amounting to USD98 million during the same period. This further underscores a broad trend of decreased investment in major cryptocurrencies. Despite the overall negative trend in crypto asset investments, Solana stood out with positive movement, experiencing the largest inflows among digital assets. Solana saw an influx of USD6.2 million, suggesting some investors are shifting their focus towards this particular cryptocurrency.
The report attributes the surge in outflows to stronger-than-expected macroeconomic data from the previous week, which heightened the probability of a 25 basis point interest rate cut by the US Federal Reserve. This anticipation of policy changes may have influenced investor behavior, leading to the significant withdrawals from crypto assets.
However, the outflow trend showed signs of moderation later in the week. This change was attributed to employment data falling short of expectations, which resulted in divided opinions among market participants regarding the likelihood of a 50 basis point rate cut. This evolving economic data and its impact on investor sentiment reflect the complex relationship between macroeconomic factors and the performance of crypto asset investments.
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