Cryptocurrency markets have experienced a significant outflow of investments from Bitcoin and Ethereum funds, coinciding with shifts in sentiment due to macroeconomic factors.
Sharp Decline in Bitcoin Investments
Approximately $1 billion was withdrawn from Bitcoin funds in just a few days. Meanwhile, Ethereum funds faced similar pressure, losing around $440 million. The outflow was primarily concentrated in the U.S., Sweden, and Switzerland, but Canada and Germany managed to attract small inflows, partially offsetting the losses.
Market Response to Jerome Powell's Remarks
The week started with nearly $2 billion in outflows, yet a more dovish speech by Federal Reserve Chair Jerome Powell at the Jackson Hole conference sparked a slight recovery, bringing in about $594 million in fresh inflows.
Mixed Results for Altcoins
Altcoins showed mixed performance. XRP attracted $25 million, Solana added $12 million, and Cronos saw inflows of $4.4 million. In contrast, Sui and Toncoin experienced net redemptions of $12.9 million and $1.5 million respectively.
The recent turbulence underscores the fragility of institutional positioning within the cryptocurrency markets. Rapid outflows from Bitcoin and Ethereum funds illustrate how quickly sentiment can shift amid rising volatility.
