Crypto Investment Products Face $726M Outflow Amid Bearish Outlook

• With a total of $6.2M, Solana had the highest influx of any asset, while Ether lost $98 million.
• Markets are already bracing for Tuesday’s CPI inflation data.

The latest data from CoinShares shows that cryptocurrency investment products had another rough week, with $726 million leaving the market.

Crypto investment products have seen the biggest outflow observed since March 2024, according to CoinShares’ head of research James Butterfill’s latest “Digital Asset Fund Flows Weekly Report” published on September 9. This follows prior recurrent weekly outflows.

Pessimistic Outlook

The week of March 17–23, as previously reported by CoinShares, experienced unprecedented weekly withdrawals of crypto products, with a total loss of $942 million. Last week saw $643 million leave crypto investment products based on Bitcoin. With a total of $6.2 million, Solana had the highest influx of any asset, while Ethereum lost $98 million.

Consistent with the pessimistic outlook prompted by last week’s stronger-than-expected U.S. macroeconomic data, which boosted the probability of a 25-basis-point (bp) interest rate drop, selling pressure has persisted.

When the US employment statistics came out negative, the market paused its daily outflows in expectation that the US Federal Reserve will choose to lower interest rates by 50 basis points.

Markets are already bracing for Tuesday’s CPI inflation data; a 50 bp drop is more probable if inflation falls short of forecasts. Experts say that risk-on assets like Bitcoin had its “moment of truth” with the latest US job market figures.

Assets with a high degree of uncertainty, such as risk-on investments, have benefited from a rise in investor demand whenever borrowing rates have fallen. Several prominent Bitcoin mining businesses, like CleanSpark (24% fall), closed the week with double-digit declines, according to CNBC.

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