Digital asset investment products experienced a substantial net outflow of $726 million last week, matching the record outflow seen in March, according to the latest data from CoinShares. Analysts attribute this negative sentiment to stronger-than-expected macroeconomic data, increasing the likelihood of a 25 basis point interest rate hike by the Federal Reserve.
Bitcoin bore the brunt of the outflows, with a total of $643 million leaving Bitcoin-related investment products. In contrast, shorting Bitcoin saw inflows of $3.9 million, indicating a bearish sentiment among some investors. Ethereum also experienced outflows of $98 million. Solana was a notable exception, with inflows of $6.2 million, the highest among all crypto assets.
Geographically, the outflows were concentrated in the US, accounting for $721 million, with Canada also seeing outflows of $28 million. Europe presented a contrasting picture, with Germany and Switzerland experiencing inflows of $16.3 million and $3.2 million, respectively.
The market outlook remains uncertain, with investors eagerly awaiting Tuesday’s Consumer Price Index (CPI) inflation report. A lower-than-expected inflation figure could increase the chances of a 50 basis point rate cut, potentially influencing further market movements.
