Last week, cryptocurrency investment products showed negative dynamics with significant capital outflows following a prolonged period of inflows.
Outflow from Crypto ETPs
According to CoinShares, global crypto ETPs experienced a $223 million outflow last week. This occurred after 15 consecutive weeks of positive inflows, which was driven by changes in investor sentiment after the Federal Open Market Committee (FOMC) meeting.
Bitcoin and Ether Dynamics
Bitcoin accounted for the bulk of last week's losses, with $404 million in outflows. However, Ether continues to show resilience and attracted $133 million, completing its 15th week of positive inflows. Some analysts suggest that Bitcoin may regain investor attention after the summer recess.
Economic Conditions and Their Impact on the Crypto Sector
Investor sentiment was dampened by remarks from Federal Reserve Chair Jerome Powell, which lowered expectations for a rate cut in September from 63% to 40%. This complicates the outlook for Bitcoin's potential growth, especially in August, which historically has been one of its worst months.
The overall decline in inflows to cryptocurrency investment products indicates market fluctuations and the influence of macroeconomic factors, while Bitcoin and Ether remain in the analytical spotlight.
