Institutional investors pulled the plug on their 19-week crypto buying spree, marking a significant shift in the market.
Billions In, Millions Out
CoinShares reported that last week saw a massive $415 million outflow from crypto investment products. This follows a record-breaking 19-week period where institutions poured a staggering $29.4 billion into the market—significantly surpassing the $16 billion seen in the initial 19 weeks of US spot ETF launches earlier this year.
The Fed’s Influence?
CoinShares suggests the sudden shift is linked to the Federal Reserve. A more hawkish stance signaled by Fed Chair Jerome Powell, coupled with higher-than-expected inflation figures, may have spooked investors. This theory is supported by the fact that foreign markets largely ignored the Fed’s announcement, suggesting the US market was uniquely affected.
Where the Money Went (and Didn’t)
The US led the outflows with a whopping $464 million leaving the market. However, some countries saw inflows, including Germany ($21 million), Switzerland ($12.5 million), and Canada ($10.2 million).
Bitcoin took the biggest hit, experiencing $430 million in outflows. On the other hand, some altcoins saw inflows, with Solana ($8.9 million), XRP ($85 million), and Sui ($6 million) leading the pack.
Disclaimer:
This information is for general knowledge and shouldn’t be considered investment advice. Always do your own research before investing in cryptocurrencies.
