Crypto funds endure $812M outflow week amid rate cut expectations

**Cryptocurrency Markets Face $812 Million Weekly Outflows as Fed Rate Cut Hopes Diminish**

Cryptocurrency investment products experienced massive capital flight totaling $812 million last week, driven by strengthening macroeconomic indicators that reduced Federal Reserve interest rate cut expectations. Bitcoin and Ethereum, the leading digital assets, suffered the heaviest institutional selling pressure in recent months.

Bitcoin outflows reached a staggering $719 million, while Ethereum recorded $409 million in withdrawals, according to CoinShares data. These significant cryptocurrency outflows highlight how traditional monetary policy expectations continue influencing blockchain-based investment products and digital asset markets.

The substantial capital exodus from crypto funds reflects investors' shifting risk appetite amid evolving Federal Reserve policy outlook. Stronger economic data has dampened hopes for aggressive rate cuts, typically bullish catalysts for alternative investments like cryptocurrency and DeFi protocols.

This $812 million weekly outflow represents one of the largest institutional crypto withdrawals in 2024, signaling potential headwinds for Bitcoin, Ethereum, and broader cryptocurrency market sentiment. Investors should monitor Federal Reserve communications and macroeconomic developments, as traditional monetary policy increasingly impacts digital asset allocation strategies and blockchain investment flows.