Last week saw a significant surge in investments into crypto-based products, totaling $533 million. This marks the highest level of inflows in the past five weeks. The spike in investments was largely driven by Federal Reserve Chair Jerome Powell’s hints at a possible rate cut during the Jackson Hole Symposium. Bitcoin led the charge with an impressive $543 million in inflows.
What Caused Bitcoin’s $543 Million Inflow?
Despite a drop in trading volume in recent weeks, the weekly trading volume reached a substantial $9 billion. The United States was a major contributor, accounting for $498 million of the total inflows. Other noteworthy contributions came from Hong Kong and Switzerland, registering $16 million and $14 million, respectively. Conversely, Germany experienced a minor outflow of $9 million, continuing its trend of net outflows for the year. Access NEWSLINKER to get the latest technology news.
Bitcoin emerged as the frontrunner with a remarkable $543 million in inflows. Most of this occurred on Friday, following Jerome Powell’s dovish comments on monetary policy. This underlines Bitcoin’s sensitivity to interest rate forecasts.
Why Did Ethereum Experience $36 Million Outflows?
In contrast, Ethereum faced outflows amounting to $36 million last week. At the same time, blockchain-related stocks experienced their third consecutive week of inflows, totaling $4.8 million. This trend indicates sustained interest and growing investor confidence in the blockchain sector.
Key Takeaways for Investors
- Bitcoin showed a high sensitivity to monetary policy hints, leading to significant inflows.
- The US continues to dominate crypto inflows, highlighting its robust market presence.
- Despite Ethereum’s outflows, blockchain stocks are seeing consistent investment, suggesting confidence in the broader sector.
Cryptocurrencies such as Bitcoin and Ethereum demonstrated a noticeable reaction to Jerome Powell’s statements regarding interest rate policies. Investors in the crypto space are cautious and closely monitoring potential changes in interest rates.
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/investors-pour-533-million-into-crypto