Crypto funds witness $305M outflows: Bitcoin shows negative sentiment

As per the latest report from CoinShares, crypto investment products saw an outflow of $305 million last week. The figure shows the stark opposite of the inflows from the week prior.

Crypto funds enjoyed a total inflow of $533 million the week before and a muted inflow of $30 million in the week prior. Last week’s surge in inflow was mainly due to Jerome Powell’s remark about the possibility of a September rate cut.

However, the CoinShares report shows that crypto funds witnessed an outflow of $305 million coupled with major negative sentiment in various regions and providers.

Crypto funds outflow mainly due to stronger US economic data

CoinShares mentioned in the report that the outflows from last week are primarily because of the stronger-than-expected economic data in the US. This has minimized the expectation of a 50 basis point rate cut in September.

“We continue to expect the asset class to become increasingly sensitive to interest rate expectations as the FED gets closer to a pivot,” CoinShares said.

Coming from a regional perspective, the United States saw an outflow of $318 million. Germany and Sweden followed suit with a minor outflow of $7.3 million and $4.3 million, respectively. On the other hand, Switzerland and Canada enjoyed minor inflows of $5.5 million and $13 million, respectively.

Bitcoin saw negative sentiment with $319 million outflows

According to CoinShares, the majority of the negative sentiment revolved around Bitcoin. BTC saw an outflow of $319 million in the last week. However, short Bitcoin investments witnessed a second consecutive week of inflow at $4.4 million.

Ethereum couldn’t escape from the outflow. The second largest cryptocurrency saw an outflow of $5.7 million. While ETH saw an outflow, Solana enjoyed a $7.6 million in inflow.

CoinMarketCap data shows that Bitcoin and Ethereum started off on a negative note this week, with the whole market trading in the red. Bitcoin fell as low as $57,000, while Ethereum dropped to $2,400.

The global crypto market cap has also nosedived by 1% as the top cryptocurrencies lose single-digit value in the last 24 hours.


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