The uninterrupted inflow series in cryptocurrency investment products, which lasted for 15 weeks, ended with profit-taking triggered by the hawkish messages from the U.S. Federal Reserve (Fed) and strong economic data.
Digital asset investment products saw a total outflow of $223 million last week, thus ending a 15-week positive flow trend. At the beginning of the week, there was a significant inflow of $883 million, while from the middle of the week, the hawkish messages from the Fed regarding monetary policy and strong economic data exceeding expectations from the U.S. led investors to realize their profits.
Especially, the weak U.S. non-farm payroll data that came on the last day of the week signaled dovish messages for the Fed; however, the general risk-averse tendency in the market prevailed, and outflows exceeded $1 billion on Friday. With a total net inflow of $12.2 billion over the last 30 days, it was considered normal for investors to make a small profit-taking.
Outflow in Bitcoin, Record Series in Ethereum
The negative sentiment in the market was most heavily borne by Bitcoin (BTC), with an outflow of $404 million from investment products throughout the week. Nevertheless, total inflows for Bitcoin year-to-date (YTD) continue to remain around $20 billion. This situation is due to Bitcoin's sensitivity to U.S. monetary policies.
On the other hand, Ethereum (ETH) investors maintained their positive stance, and the asset completed its 15th consecutive week with an inflow, seeing a net inflow of $133 million on a weekly basis. In addition to Ethereum, XRP investment products saw an inflow of $31.2 million, Solana (SOL) received $8.8 million, and the recently popular SEI saw an inflow of $5.8 million. Additionally, Aave and Sui, which saw smaller inflows, attracted $1.2 million and $0.8 million in investments, respectively.
