Crypto products see second-biggest weekly outflows in 2024: CoinShares

Data collected by crypto ETP provider CoinShares shows that the cryptocurrency market witnessed its biggest weekly outflows since March amid falling prices.

Crypto investment products saw outflows exceeding $725 million last week, the largest outflow since March.

CoinShares Research Head James Butterfill stated in his research report dated September 9 that this dynamic was due to the stronger-than-expected macroeconomic data from the previous week, which increased speculation about a potential 25 basis point interest rate cut by the US Federal Reserve (Fed).

“Markets are now awaiting the Consumer Price Index inflation report due on Tuesday. If inflation remains below expectations, a further 50 basis point cut to the index is likely.”

James Butterfill, head of research at CoinShares

The data shows that outflows were mainly concentrated in the US, which saw a net withdrawal of $721 million, while Canadian-based products saw outflows of $28 million. In contrast, European markets showed a more positive sentiment, with Germany and Switzerland recording inflows of $16.3 million and $3.2 million respectively.

Bitcoin stuck in fear zone

Bitcoin (BTC) saw the biggest outflows of $643 million, while short bitcoin saw smaller inflows of $3.9 million. Ethereum (ETH) lost $98 million, mostly from Grayscale Trust, as exchange-traded fund inflows slowed. Solana (SOL) stood out with inflows of $6.2 million, the most among digital assets.

Bitcoin also saw a sharp decline in exchange activity, with daily inflows dropping 68% from 68,470 BTC to 21,742 BTC, while outflows dropped 65% from 65,847 BTC to 22,802 BTC. Data from Alternative shows that the Crypto Fear and Greed Index reached its lowest level in over a month, 26, signaling increasing investor anxiety and a more cautious market sentiment.