Digital Asset Investments Witness $415 million Outflows Amid Market Uncertainty
According to CoinShares, digital asset investment products experienced a significant $415 million outflow last week. This marks the first negative flow after 19 consecutive weeks of inflows.
The shift in investor sentiment was triggered by higher-than-expected CPI data and hawkish comments from U.S. Federal Reserve Chair jerome Powell.These factors put pressure on the cryptocurrency market, leading to a decline in investor confidence.
James Butterfill, CoinSharesâ head of research, noted that the outflows halted an unprecedented 19-week streak of inflows following the U.S. election. During this period, crypto exchange-traded products and other digital asset investments accumulated $29.4 billion.
Most of the outflows occurred in the U.S., with $464 million exiting.However, Germany, Switzerland, and Canada recorded inflows of $21 million, $12.5 million, and $10.2 million,respectively.
Bitcoin faced the largest outflows, with $430 million leaving the asset. Ethereum also saw $7 million in outflows. Interestingly, Solana led with the most inflows, totaling $8.9 million, followed by XRP at $8.5 million.
These developments highlight the volatility of the crypto market and the impact of macroeconomic factors on investor behavior. For more insights, check out the CoinShares weekly market report.
