Bitcoin and altcoins face significant selling pressure, as CoinShares’ latest report reveals a substantial $726 million outflow from crypto investment products last week. This marks the highest outflow since March this year.
Bitcoin Takes the Lead While Solana Surprises
CoinShares’ data indicates Bitcoin experienced a $643 million outflow, making it the hardest hit among cryptocurrencies. Meanwhile, short-Bitcoin products saw an inflow of $3.9 million. Following closely, Ethereum recorded a $98 million outflow, largely due to Grayscale Trust, with minimal inflows from newly launched spot Ethereum ETFs. Access COINTURK FINANCE to get the latest financial and business news.
In a surprising twist, Solana attracted the highest inflow among crypto investment products, totaling $6.2 million. This shows selective optimism among investors despite the overall market downtrend.
Why Is the US at the Epicenter of Outflows?
The United States emerged as the epicenter of these outflows, accounting for a staggering $721 million, followed by Canada with $28 million. In contrast, Europe displayed a more positive sentiment, with Germany and Switzerland recording inflows of $16.3 million and $3.2 million, respectively.
Key Takeaways
The CoinShares report highlights notable trends:
- Bitcoin saw the highest outflow at $643 million.
- Solana attracted the highest inflow with $6.2 million, signaling selective investor optimism.
- The US was the epicenter of outflows, totaling $721 million.
- Europe showed positive inflows, particularly in Germany and Switzerland.
The US Federal Reserve’s stronger-than-expected macroeconomic data, which suggests a potential 25 basis point rate cut, has been identified as the primary factor behind the current negative sentiment in the crypto market. Moreover, last week’s weaker employment data accelerated the outflows. However, if this week’s inflation figures come in below expectations, it could pave the way for a 50 basis point cut, potentially reversing the outflows and driving inflows into crypto investment products.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.
Source: https://en.bitcoinhaber.net/bitcoin-faces-major-outflows-solana-gains