Over the past week, cryptocurrency markets have seen significant changes in investment flows, reflecting investor sentiment towards U.S. monetary policy.
Major Outflows from Crypto Assets
According to CoinShares, digital asset funds experienced a total outflow of $1.43 billion last week, marking the largest since March. The majority of these outflows came from Bitcoin, which accounted for around $1 billion. In contrast, Ethereum proved to be more resilient, recording $440 million in outflows but achieving a mid-month inflow of approximately $2.5 billion.
Market Reaction to Fed Chair's Statement
Early in the week, growing pessimism regarding the Federal Reserve's hawkish stance led to nearly $2 billion in outflows from funds. However, after Fed Chair Jerome Powell’s speech at the Jackson Hole symposium, perceived as more dovish than feared, the market welcomed back $594 million. This shifted investors' strategies.
Trends in Altcoin Investment Flows
Investment flows into smaller cryptocurrencies varied. Positive movements were seen in XRP (+$25 million), Solana (+$12 million), and Cronos (+$4.4 million), while Sui (-$12.9 million) and Ton (-$1.5 million) faced the most significant outflows. Current dynamics indicate selective accumulation among certain assets.
In conclusion, an active rotation between Bitcoin and Ethereum is evident, with growing interest in altcoins. Market participants are closely monitoring upcoming economic data that may influence further dynamics.
