According to CoinShares, a crypto ETP provider, the cryptocurrency market experienced the highest weekly outflows ever since March due to falling prices.
Crypto investments products experienced outflows in excess of $725 million during the last week. This is the biggest outflow recorded since March.
On Sept. research report, CoinShares head of research James Butterfill attributed this dynamic to stronger-than-expected macroeconomic data from the previous week, which increased speculation about a potential 25 basis point interest rate cut by the U.S. Federal Reserve.
“The markets are now awaiting Tuesday’s Consumer Price Index inflation report, with a 50bp cut more likely if inflation comes in below expectations.”
James Butterfill is the head of CoinShares research
In the U.S. alone, outflows totaled $721,000,000, while Canada saw outflows amounting to $28,000,000. Germany and Switzerland, on the other hand, recorded positive inflows, of $3.2 and $16.3 million respectively.
Bitcoin stuck in fear zone
BitcoinBTC) saw the largest outflows at $643 million, while short-bitcoin had small inflows of $3.9 million. Ethereum (ETHAs exchange-traded funds inflows decreased, Solana ( ) suffered 98 million dollars of losses, mostly from Grayscale Trust. Solana (SOLInflows of $6,2 million were the largest among digital assets.
Bitcoin saw A sharp drop in the exchange activity. Daily inflows dropped 68%, from 68.470 BTC down to 21.742 BTC. Outflows fell 65%, from 65.847 BTC up to 22.802 BTC. Alternative Data shows the Crypto Fear and Greed Index has hit its lowest point since over a week, indicating increased investor anxiety and cautious market sentiment.
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Source: crypto.news