Digital Asset Products See Largest Outflows Since March, Totaling $726M
Ruholamin Haqshanas is a contributing crypto writer for CryptoNews. He is a crypto and finance journalist with over four years of experience. Ruholamin has been featured in several high-profile crypto...
Digital asset investment products have experienced a significant downturn, with outflows totaling $726 million over the past week.
The figure matches the largest recorded outflow, which occurred in March of this year, CoinShares said in a recent report.
Per the report, the primary driver behind the negative sentiment was stronger-than-expected macroeconomic data from the previous week, which led to increased speculation of a 25 basis point (bp) interest rate cut by the US Federal Reserve.
However, the market sentiment showed some signs of stabilization later in the week, as employment data fell short of expectations.
This tempered some fears, leading to a divided outlook on whether the Fed might implement a larger, 50bp rate cut.
All eyes are now on the upcoming Consumer Price Index (CPI) inflation report, set to be released on Tuesday.
If inflation numbers come in lower than expected, a 50bp rate cut becomes more likely, which could have further implications for the crypto market.
The recent outflows were overwhelmingly concentrated in the United States, which accounted for $721 million of the total $726 million.
Canada also saw significant outflows, contributing $28 million to the overall figure.
In contrast, European markets showed more positive sentiment, with inflows in some regions.
Germany led the way in Europe with inflows of $16.3 million, while Switzerland followed with $3.2 million.
Bitcoin was hit particularly hard by the recent downturn, experiencing outflows totaling $643 million.
Interestingly, short-Bitcoin products
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