Cryptocurrency investment products experienced a significant downturn last week, with a total outflow of $600 million, marking the largest outflow since March 22, 2024. This decline can be attributed to a more hawkish Federal Open Market Committee (FOMC) meeting, prompting investors to reduce their exposure to fixed supply assets.
The outflows were mainly focused on Bitcoin, with a staggering $621 million exiting the market. This bearish trend also led to an inflow of $1.8 million into short Bitcoin positions. However, despite this overall negative trend, several altcoins bucked the trend and saw inflows. Ethereum, LIDO, and XRP were the top performers, receiving inflows of $13 million, $2 million, and $1 million, respectively.
In the last week, the net inflows or outflows of altcoins were as follows:
– 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 recent upward trend mirrors a similar event 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, combined with recent price sell-offs, caused total assets under management (AuM) to drop 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 significantly higher than last year’s $2 billion per week. Digital asset ETFs continue to hold a steady 31% of global trading volumes on trusted exchanges.
In terms of regional trends, the U.S. accounted for the majority of the $565 million total outflows, with Canada, Switzerland, and Sweden also experiencing outflows of $15 million, $24 million, and $15 million, respectively. However, Germany bucked this trend with an inflow of $17 million.
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