Influenced by the cooling of the Federal Reserve's rate cut expectations, global digital asset ETPs experienced a net outflow of $454 million last week

According to Coinshares Weekly, affected by the market’s waning expectations of a Fed rate cut, global digital asset investment products saw a total net outflow of $454 million last week.

Among them, over the past four trading days, there was a concentrated net outflow of $1.3 billion, which has almost completely offset the $1.5 billion net inflow in the first two days of this year, indicating that market sentiment is showing ambiguous signals.

By country/region, the US market continued to dominate with an weekly outflow of nearly $569 million, reflecting a rapid cooling of local investor sentiment.

In contrast, the markets in Germany, Canada, and Switzerland recorded net inflows of $58.9 million, $24.5 million, and $21 million respectively, showing differences in how markets interpret the same macro signals.

From an asset class perspective, market sentiment is not entirely pessimistic. Bitcoin, the market leader, faced a major sell-off of nearly $405 million last week; at the same time, Ethereum also faced pressure, with a weekly outflow of $116 million.

However, some altcoins like XRP, Solana, and Sui recorded inflows of $45.8 million, $32.8 million, and $7.6 million respectively, indicating that under the overall risk-averse market sentiment, funds are still seeking opportunities in specific sectors or narratives.

In summary, the current market is experiencing a shift due to macroeconomic expectation adjustments, with funds withdrawing from core assets like Bitcoin, reflecting investors' cautious attitude amid uncertain interest rate outlooks.

However, the contrarian inflows of some altcoins may indicate that the market is preparing for the next cycle by making strategic selections and arrangements.

Therefore, the future direction of the cryptocurrency market will still depend on the specific trajectory of Federal Reserve policies and changes in the fundamentals of the crypto ecosystem.

#加密货币ETP #Investment Trends