Macro data dents sentiment as crypto investment products see $812 million in weekly outflows: CoinShares

Macro data dents sentiment as crypto investment products see $812 million in weekly outflows: CoinShares

By The Block
Stronger than anticipated macro data hit sentiment in the U.S., CoinShares Head of Research James Butterfill noted.

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**Cryptocurrency Investment Products Experience Massive $812 Million Weekly Outflows Amid Strong US Macro Data**

Digital asset investment products witnessed significant capital flight totaling $812 million in weekly outflows, according to CoinShares' latest research report. The substantial exodus from cryptocurrency funds reflects deteriorating market sentiment driven by stronger-than-expected US macroeconomic data, as highlighted by CoinShares Head of Research James Butterfill.

The robust macro indicators have intensified investor concerns about potential Federal Reserve policy tightening, creating headwinds for risk assets including Bitcoin, Ethereum, and other major cryptocurrencies. This massive outflow represents one of the largest weekly redemptions in recent months, signaling institutional and retail investors are reducing exposure to digital assets amid shifting market dynamics.

The bearish sentiment underscores the cryptocurrency market's continued correlation with traditional financial markets and macroeconomic factors. As blockchain technology and DeFi protocols mature, crypto assets remain sensitive to monetary policy expectations and economic data releases. Market participants are closely monitoring upcoming Federal Reserve decisions and their potential impact on Bitcoin prices and overall cryptocurrency adoption. This development highlights the ongoing volatility challenges facing the digital asset ecosystem.

Article Details

Market Sentiment
negative
Category
bitcoin
Reading Time
1 min read
Article Type
Article
Topics & Keywords
#Crypto#News

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Source: The Block

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