The post Bitcoin Experiences Significant Outflows Amid Four-Week Decline as US Investors Exhibit Bearish Sentiment appeared on BitcoinEthereumNews.com.

Bitcoin and Ethereum faced significant sell-offs, with investors withdrawing a staggering $876 million last week as bearish sentiment sweeps the market. The dominance of U.S. investors in this trend highlights a cautious approach amidst rising interest rates and economic uncertainty. “This is a classic case of liquidity games,” crypto analyst Kyle Chassé commented, emphasizing how hedge funds’ strategies are influencing market dynamics. Crypto markets are under pressure as outflows total $876 million last week, primarily driven by U.S. investors amid rising rates and bearish sentiment. Significant Outflows in Crypto Investments This Week Last week’s data reveals that crypto investment products witnessed outflows reaching $876 million, marking four consecutive weeks of negative performance. The CoinShares report attributes these outflows largely to U.S. investors, who withdrew an estimated $922 million from digital assets, contrasting sharply with other regions that are seizing this market slump as a buying opportunity. Bitcoin was particularly hard hit, absorbing $756 million in losses within its investment products. A crucial indicator of this fear was the $19.8 million withdrawal from short-Bitcoin products, signaling that some investors are nearing capitulation as uncertainty looms large in the market. The cumulative outflow of $4.75 billion over the last month has drastically reduced year-to-date inflows to just $2.6 billion. Total assets under management (AuM) have now fallen by $39 billion, representing a significant decrease to $142 billion—the lowest level since mid-November 2024. Impact of Federal Reserve Policies on Investor Behavior The relentless outflows over the past weeks coincide with the Federal Reserve’s stance on monetary policy, which has contributed to a risk-averse atmosphere among crypto investors. With inflation running higher than anticipated, Fed Chair Jerome Powell indicated that interest rates may remain elevated, further squeezing financial liquidity. His statement, “We do not need to be in a hurry, and are well positioned…

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Filed under: News - @ March 10, 2025 4:19 pm