In the past week, cryptocurrency investment products experienced a significant decrease in value, with a total outflow of $600 million. This marked the largest outflow since March 22, 2024, mainly due to a more hawkish Federal Open Market Committee (FOMC) meeting that led investors to reduce their exposure to fixed supply assets.
The outflows were primarily focused on Bitcoin, with an outflow of $621 million. This downward trend also resulted in an inflow of $1.8 million into short Bitcoin positions. However, despite these overall outflows, several altcoins saw inflows. Ethereum, LIDO, and XRP led the way with inflows of $13 million, $2 million, and $1 million, respectively.
Here is a breakdown of the net inflows or outflows of altcoins in the last week:
– ETH: +$13.1 million
– LEFT: -$0.2 million
– BNB: +$0.3 million
– LTC: +$0.8 million
– XRP: +$1.1 million
– ADA: +$0.7 million
– LINK: +$0.8 million
– Other altcoins: +$4.1 million
This upward trend mirrors a similar event that occurred on March 22, 2024, where significant inflows were followed by a hawkish FOMC meeting, prompting investors to reduce their exposure to fixed supply assets. These outflows, along with recent price sell-offs, led to a decrease in total assets under management (AuM) from over $100 billion to $94 billion during the week.
Transaction volumes were lower at $11 billion compared to this year’s weekly average of $22 billion, but still higher than the $2 billion per week seen last year. Digital asset ETFs continue to represent 31% of global trading volumes on trusted exchanges.
Regionally, the negative sentiment was predominantly seen in the U.S., which accounted for most of the $565 million total outflows. Canada, Switzerland, and Sweden also experienced outflows of $15 million, $24 million, and $15 million, respectively. However, Germany bucked this trend with an inflow of $17 million.
*This is not investment advice.
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