- Impact of US Economic Data on Crypto Funds
- Outflow from Bitcoin and Ethereum
- State of the Global Crypto Market
As per the latest report from CoinShares, crypto investment products saw an outflow of $305 million last week. The figure shows the stark opposite of the inflows from the week prior.
Impact of US Economic Data on Crypto Funds
CoinShares mentioned in the report that the outflows from last week are primarily because of the stronger-than-expected economic data in the US. This has minimized the expectation of a 50 basis point rate cut in September. > *“We continue to expect the asset class to become increasingly sensitive to interest rate expectations as the FED gets closer to a pivot,”* CoinShares said. From a regional perspective, the United States saw an outflow of $318 million. Germany and Sweden followed suit with a minor outflow of $7.3 million and $4.3 million, respectively. On the other hand, Switzerland and Canada enjoyed minor inflows of $5.5 million and $13 million, respectively.
Outflow from Bitcoin and Ethereum
According to CoinShares, the majority of the negative sentiment revolved around Bitcoin. BTC saw an outflow of $319 million in the last week. However, short Bitcoin investments witnessed a second consecutive week of inflow at $4.4 million. Ethereum couldn’t escape from the outflow. The second largest cryptocurrency saw an outflow of $5.7 million. While ETH saw an outflow, Solana enjoyed a $7.6 million in inflow.
State of the Global Crypto Market
CoinMarketCap data shows that Bitcoin and Ethereum started off on a negative note this week, with the whole market trading in the red. Bitcoin fell as low as $57,000, while Ethereum dropped to $2,400. The global crypto market cap has also nosedived by 1% as the top cryptocurrencies lose single-digit value in the last 24 hours.
Thus, crypto funds witnessed a significant outflow last week, primarily driven by strong US economic data and shifting interest rate expectations. Despite this, certain cryptocurrencies like Solana continued to attract investments.
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