Cryptocurrency Investment Products Record First Outflows in 19 Weeks

The Federal Reserve’s hawkish rhetoric and the recent Consumer Price Index (CPI) release have led to $415 million in outflows from digital asset investment products, according to a recent market report. This marks the first time these products have experienced negative flows after a 19-week streak of inflows.

Factors Contributing to Outflows

The outflows follow renewed downside pressure on cryptocurrencies, triggered by higher-than-expected CPI data and hawkish remarks from U.S. Federal Reserve Chair Jerome Powell. Investor confidence appeared to take a hit, leading to a significant exit from digital asset investment products.

“We believe these outflows were triggered by the Congressional meeting with Fed Chair Jerome Powell, who signalled a more hawkish monetary policy stance, coupled with U.S. inflation data exceeding expectations.”

said James Butterfill, head of research at CoinShares.

Regional Outflows and Inflows

The majority of the outflows occurred in the U.S., with $464 million exiting. However, other regions such as Germany, Switzerland, and Canada defied the trend, recording inflows of $21 million, $12.5 million, and $10.2 million, respectively.

Asset-Specific Outflows and Inflows

Bitcoin saw the largest outflows, with $430 million exiting the asset. Short-Bitcoin products also registered negative flows, totaling $9.6 million. Meanwhile, Ethereum recorded $7 million in outflows.

On the other hand, Solana led with the most inflows, totaling $8.9 million, followed by XRP at $8.5 million. Sui also recorded inflows of $6 million.

Tips for investors:

  • Stay informed about market trends and economic indicators.
  • Diversify your investment portfolio to minimize risk.
  • Keep an eye on regulatory developments and their potential impact on the market.

    • For more news and updates on the cryptocurrency market, visit Global Crypto News.

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