Bitcoin Leads $223M Outflow in Digital Asset Funds
Digital asset funds faced $223M in outflows, ending a 15-week inflow streak amid hawkish Fed sentiment and strong U.S. data.
- Digital asset funds saw $223M in outflows, breaking a 15-week streak.
- Bitcoin recorded the largest outflow at $404M.
- Ethereum bucked the trend with $133M in inflows.
Digital asset funds have recorded their first weekly outflows in 15 weeks, with a total of $223 million leaving the space. The shift in investor behavior followed a hawkish Federal Open Market Committee (FOMC) outlook and stronger-than-expected U.S. economic data, which weighed heavily on risk-on assets like cryptocurrencies.
The week started with strong inflows totaling $883 million, suggesting positive sentiment. However, the momentum reversed midweek as concerns grew over prolonged higher interest rates.
Bitcoin Takes a Hit, Ethereum Stays Resilient
Bitcoin led the outflows, shedding approximately $404 million—a clear sign that investors quickly pulled back from the market leader amid macro uncertainty. The outflows from Bitcoin funds marked a sharp contrast to the positive trend seen over recent weeks.
On the flip side, Ethereum continued to attract capital, marking its 15th consecutive week of inflows with $133 million. This consistent interest in Ethereum may reflect growing investor confidence in its long-term utility, especially with the ecosystem’s upcoming upgrades and increasing DeFi activity.
What’s Next for Digital Assets?
While the recent outflows may seem alarming, they largely reflect short-term reactions to macroeconomic signals. Analysts suggest that digital asset investors are now in a wait-and-see mode, eyeing further FOMC statements and inflation data before making new moves.
Overall, this shift in fund flows serves as a reminder of how sensitive digital assets are to macroeconomic indicators, especially U.S. monetary policy. The coming weeks will be crucial in determining whether this is a temporary blip or the start of a broader risk-off phase.
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