US post-election honeymoon ends as macroeconomic data drives markets

Digital asset investment products saw modest inflows of $48 million last week. While nearly $1 billion came in during the first part of the week, outflows of $940 million in the second half reversed much of the gains. This change came after the release of new macroeconomic data and the minutes of the Federal Reserve, which indicated a stronger US economy and a more falsified position.

According to CoinShares, this could signal that the post-US election honeymoon is over, with macroeconomic indicators regaining their influence on asset prices.

Modest inflows amid renewed macroeconomic concerns

The latest edition of the “Digital Asset Fund Flows Weekly Report” revealed that Bitcoin attracted $214 million in inflows last week, maintaining its lead as the best-performing digital asset with $799 million in inflows through the date, although it also saw the biggest departures. later in the week. Inflows to short Bitcoin products stood at $1.8 million.

Ethereum, on the other hand, struggled the most, with an outflow of $256 million, which CoinShares attributes to a general decline in the tech sector rather than specific asset concerns. Solana, on the other hand, remained strong, with $15 million in new investments.

XRP racked up significant inflows of $41 million last week, driven largely by political and legal developments. The inflows reflect growing optimism as the SEC’s Jan. 15 appeal deadline approaches.

Multi-asset products followed suit with $21.1 million in inflows. Interestingly, altcoins attracted investment despite lackluster price performance. The leaders were Aave, Stellar, and Polkadot, which recorded receipts of $2.9 million, $2.7 million, and $1.6 million, respectively. Additionally, Cardano, Litecoin, and Chainlink also recorded inflows of $1.2 million, $0.7 million, and $0.4 million, respectively, during the same period.

Switzerland leads the departures

In terms of geography, the US stood out with $79 million in admissions, followed by Germany with $52.4 million over the past week. Canada, Brazil, and Australia also saw inflows of $37.1 million, $21.9 million, and $10.3 million, respectively.

Switzerland recorded the highest outflow of the week, recording $85.3 million. A similar sentiment was seen in Hong Kong and Sweden, as the two countries witnessed outflows of $36.6 million and $33.2 million, respectively.

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