Digital asset markets have been whipsawed over the past two weeks. Sentiment has shifted sharply after drawing nearly $2 billion in crypto inflows on optimism around potential Fed rate cuts.
Last week, $812 million exited investment products amid stronger-than-expected US macro data.
Crypto Outflows Reach $812 Million As Macro Data Shakes Confidence
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The latest CoinShares report indicates crypto outflows reached $812 million last week. This marks a notable reversal after crypto inflows approached the $2 billion mark in the week ending September 20.
Bitcoin saw $719 million in outflows, while Ethereum registered $409 million. This put a near-halt to the pioneer crypto’s otherwise strong year-to-date (YTD) inflows of $12 billion.
Interestingly, there was no corresponding surge in short-Bitcoin products. This may mean that the retreat was driven by caution rather than conviction in a sustained downturn.
Meanwhile, Ethereum’s sharp reversal comes just one week after the asset attracted $772 million in inflows. This downturn shows the volatility of investor sentiment around the second-largest crypto by market cap.
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Still, not all digital assets suffered. Solana stood out with $291 million in inflows, buoyed by the anticipation of upcoming US ETF launches.
XRP also drew $93.1 million, reflecting speculation that altcoins may benefit from diversification flows as institutional products broaden.
Notwithstanding, the contrast is impossible to ignore. While Bitcoin and Ethereum remain sensitive to shifting macro narratives, assets like Solana are increasingly positioned as g
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Author: Lockridge Okoth
