Fed’s Hawkish Stance Sends Bitcoin Plummeting: Outflows Reach $430 Million! 😱💸

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In a shocking turn of events, digital asset investment trends have taken a nosedive as outflows reached a staggering $415 million. This comes after 19 consecutive weeks of inflows post-US election, during which a whopping $29.4 billion was amassed – significantly outpacing the $16 billion gathered in the first 19 weeks of US spot ETF trading since January 2024.

CoinShares Head of Research James Butterfill attributes this shift to concerns arising from Federal Reserve Chair Jerome Powell’s recent remarks on tighter monetary policy and inflation data that exceeded expectations. It seems the Fed’s hawkish stance has left Bitcoin with a nasty case of the jitters, as outflows reached a staggering $430 million last week.

Short-Bitcoin products did not escape unscathed, recording $9.6 million in outflows. Ethereum also felt the pinch, experiencing $7.2 million in outflows. Multi-asset products struggled as well, losing $0.6 million during the same period.

On the bright side, Solana led inflows with $8.9 million, followed by XRP and Sui, which drew in $8.5 million and $6 million, respectively. Next up were Cardano and Litecoin which saw smaller inflows of $1.9 million and $1.2 million each. Meanwhile, blockchain equities maintained momentum with $20.8 million in inflows which pushed year-to-date totals to $220 million.

The United States accounted for the majority of losses, with $464 million in outflows. Hong Kong and Brazil saw outflows of $4 million and $2.1 million respectively over the past week. On the positive side, Germany led with $21 million in inflows, followed by Switzerland at $12.5 million and Canada at $10.2 million. Australia and Sweden saw more modest inflows of $2.3 million and $0.9 million, respectively.

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2025-02-17 21:11