Coinshare’s Latest Report Highlights Second Consecutive Week of Crypto Market Inflows

The crypto market experienced its second consecutive week of inflows, partly due to the Federal Open Market Committee’s decision to cut interest rates for the first time since 2020, according to Coinshare’s latest report.

Crypto Investment Products Inflows

In Coinshare’s September 23 research report, it was noted that crypto investment products saw inflows amounting to $321 million. Although this figure is lower than the previous week’s $436 million rebound, the streak of positive flows remains strong.

James Butterfill, CoinShares head of research, attributed last week’s inflow to the FOMC’s decision to cut the interest rate by 50 basis points last Wednesday.

“As a result, total assets under management saw a 9% growth. Total investment product volumes were $9.5 billion, up 9% from the week prior.”

Geographical Inflows and Outflows

The report shows that the majority of inflows came from the United States, contributing $277 million, followed by Switzerland with $63.4 million. Brazil had modest inflows of $1.4 million, while Australia saw no trading activity. These were offset by outflows from European countries like Germany and Sweden, with $9.5 million and $7.8 million, respectively. Canada experienced outflows of $2.3 million, followed by Hong Kong with $1.3 million.

Performance of Digital Assets

Out of the eleven digital assets listed, Bitcoin saw the largest weekly inflows of $284 million, which prompted inflows into short-bitcoin investments up to $5.1 million. Meanwhile, Ethereum continues its five-week streak of being an outlier, with weekly outflows reaching $29 million.

Market Reactions and Expert Insights

Jean-David Pequignot, Head of Markets at OSL, a Hong Kong-regulated digital asset platform, noted that Bitcoin and other crypto assets rallied in response to the FOMC rate cut. However, he mentioned that “the committee remains cautious about further cuts.”

“Governor Bowman was in favor of a smaller cut, while Chair Jerome Powell expressed concerns about being too aggressive with policy loosening,” Pequignot added.

This phenomenon further illustrates the significant influence traditional monetary policy has over digital assets like cryptocurrency, as rate cuts have historically boosted risky assets.

“The US election is fully in play, and the market will pay great attention to economic indicators in the coming months regarding where the Fed fund rate is heading.”

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