Crypto markets are feeling the heat as investors pull back their money. Last week saw a whopping $305 million outflow from crypto investment products, with Bitcoin taking the biggest hit.
The US Leads the Outflow Trend
The US saw the most significant outflows, with $318 million leaving the market between August 26th and August 31st. This trend is likely driven by stronger-than-expected economic data in the US, which has reduced expectations of a quick interest rate cut.
Bitcoin Takes the Biggest Hit
Bitcoin, the king of crypto, saw a massive $319 million outflow, with most of the losses coming from Bitcoin ETFs. The ARK 21Shared Bitcoin ETF (ARKB) saw the biggest loss, with $220.95 million flowing out. Other big losers included Grayscale Bitcoin Trust (GBTC) and ProShares Bitcoin Strategy ETF (BITO).
Ethereum Stays Stagnant
Ethereum saw little movement last week, with trading volumes remaining low. This is likely due to the launch of spot ETH ETFs in the US, which has slowed down trading activity.
Solana Sees Some Love
While most crypto assets saw outflows, Solana-based products saw a positive $7.6 million inflow last week.
What’s Next for Crypto?
Experts expect the crypto market to remain sensitive to interest rate expectations, especially as the Federal Reserve gets closer to a potential pivot.
