What’s Driving Crypto Fund Trends This Week?

Recent reports indicate that crypto funds experienced a slight net inflow of $48 million last week, reflecting the influence of changing macroeconomic conditions and monetary policy shifts. CoinShares data reveals that nearly $1 billion was injected into these funds early in the week, but by its end, $940 million had been withdrawn, heavily influenced by robust U.S. economic indicators and a more aggressive stance from the Federal Reserve. CoinShares Research Director James Butterfill remarked, “The honeymoon after the U.S. elections is over, and macroeconomic data is once again dictating prices.”

How Did Bitcoin Perform Compared to Ethereum?

Investment products linked to Bitcoin saw the most significant inflows, totaling $214 million, making them the primary contributors to the week’s overall gains. Despite the late-week outflows, Bitcoin products have recorded a remarkable net inflow of $799 million since the year’s start.

Why Are Altcoins Like XRP Gaining Attention?

In the U.S., spot Bitcoin ETFs accounted for $312.8 million of these inflows. Conversely, Ethereum-focused funds faced losses of $256 million, largely attributed to a decline in the tech sector, including a 3.5% drop in the Nasdaq 100 index. Altcoins such as XRP brought in $41 million as optimism grows ahead of the SEC appeal in the Ripple case, while Solana funds attracted $15 million.

– Bitcoin leads with substantial inflows, totaling $214 million.
– Ethereum struggles with a $256 million outflow.
– XRP and Solana show positive trends, driven by optimism.
– Overall market remains highly volatile due to economic factors.

Currently, Bitcoin is trading at $90,897, reflecting a 7.8% decline over the past week, while Ethereum has dropped 14.8% to $3,063. The ongoing volatility in the cryptocurrency market is being closely monitored as economic pressures continue to shape investment strategies.