The post Bitcoin leads $305 million outflows as strong US economic data hits crypto appeared on BitcoinEthereumNews.com.

Crypto investment products faced significant outflows last week, totaling $305 million, as negative sentiment spread across various providers and regions, according to CoinShares‘ latest weekly report. James Butterfill, CoinShares’ head of research, attributed these outflows to stronger-than-expected US economic data. He noted that this data “diminished the likelihood of a 50-basis point interest rate cut.” He further added: “We continue to expect the asset class to become increasingly sensitive to interest rate expectations as the FED gets closer to a pivot.” Bitcoin, US bore the brunt of outflows Bitcoin experienced most of these outflows, with asset managers like Grayscale, ProShares, and 21Shares all reporting net losses last week. The top crypto saw $319 million in outflows, while the United States saw a slightly lesser total outflow of $318 million. In contrast, short Bitcoin investment products saw their most significant inflows since March, attracting $4.4 million for the second consecutive week. Ethereum also faced outflows, losing $5.7 million, while trading volumes remained stagnant at just 15% of those seen during the US ETF launch week. Galaxy Digital previously highlighted that Ethereum ETFs were trading significantly lower volumes than Bitcoin ETFs, falling well below ETH/BTC centralized exchange volume and market cap ratios. This disparity is partly due to prime trading desks not yet offering margin on Ethereum ETFs. It stated: “The ratio of Ethereum ETF volume to Bitcoin ETF volume in the first 25 days has continued to decline.” Solana and Blockchain Equities buck the trend Despite the overall negative market, Solana attracted $7.6 million in inflows, defying the broader trend. Blockchain equities also saw positive momentum, with $11 million flowing into products focused on Bitcoin miners. This investment surge in miners comes as they find new ways to leverage their BTC mining equipment by supplying computational power to artificial intelligence (AI)…

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Filed under: News - @ September 2, 2024 1:19 pm