The post Crypto Fund Flows Hit by Macro Pressure After Post-Election Boost appeared on BitcoinEthereumNews.com.

The world of crypto funds is never short of drama, and last week was no exception. After a strong start with nearly $1 billion in inflows, the tide quickly turned as macroeconomic data and a hawkish Federal Reserve weighed on investor sentiment. With net inflows shrinking to a modest $48 million, the post-U.S. election optimism seems to have faded, making way for a more cautious market outlook. In this article, we’ll explore how different crypto assets, from Bitcoin to Ethereum and beyond, performed under these shifting conditions and what it means for the road ahead. How Did Crypto Funds Perform Last Week? Weekly crypto asset flows. Images: CoinShares. According to reports, Global crypto funds saw modest net inflows of $48 million last week, signaling cautious optimism among investors. However, the week was marked by contrasting trends. Early inflows of nearly $1 billion were overshadowed by outflows of $940 million later in the week, driven by the release of hawkish Federal Open Market Committee (FOMC) minutes and robust U.S. macroeconomic data. Is Bitcoin Still the Strongest Performer? Yes, according to Coinshares, Bitcoin-based investment products led global inflows, attracting $214 million last week, despite significant outflows toward the end of the week. This resilience underscores Bitcoin’s status as a preferred asset during uncertain times. Notably, U.S. spot Bitcoin ETFs accounted for $312.8 million of the inflows, buoyed by growing institutional interest. Despite this, Bitcoin’s price declined 7.8% over the week, reflecting broader market turbulence. Why Did Ethereum Funds Face Outflows? Ethereum-based funds recorded substantial outflows of $256 million, the highest among major crypto assets. Analysts attribute this to the broader tech sell-off, with the Nasdaq 100 dropping 3.5% during the same period. U.S. spot Ethereum ETFs alone saw outflows of $186 million, suggesting that macroeconomic conditions and investor risk aversion outweighed the…

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Filed under: News - @ January 14, 2025 10:23 am