Post-US Election Honeymoon Ends as Macroeconomic Data Drives Markets

by

Last week, digital asset investment products experienced inflows totaling approximately $48 million. Initially, around $1 billion poured in at the beginning of the week, but outflows worth $940 million towards the end counteracted most of these gains. This change occurred after the publication of fresh macroeconomic data and the Federal Reserve’s minutes, which hinted at a robust US economy and a more aggressive monetary policy stance.

Based on information from CoinShares, this might suggest that the optimistic period following the U.S. election may be over, as economic indicators once again appear to have control over asset prices.

Modest Inflows Amid Renewed Macroeconomic Concerns

Last week’s version of the ‘Weekly Digital Asset Fund Flows Report’ disclosed that Bitcoin amassed a total of $214 million in investments, keeping it on top as the most successful digital asset with a staggering $799 million accumulated year-to-date. This impressive performance was achieved even amidst significant outflows later in the week. Additionally, there were inflows worth $1.8 million into short Bitcoin investment products.

Contrastingly, Ethereum faced the greatest challenge, witnessing an outflow of approximately $256 million, a situation that CoinShares attributes more to a broader tech sector decline rather than issues specific to the asset. On the flip side, Solana held its ground, attracting fresh investments worth $15 million.

Last week, Ripple (XRP) saw a substantial injection of approximately $41 million, primarily due to ongoing political and legal events. This increase in funds indicates a rising sense of positivity among investors as the January 15th deadline for the SEC’s appeal draws near.

Investments flowed into multi-asset products totaling approximately $21.1 million. It’s worth noting that altcoins managed to attract investments even though their price performance was subpar. At the forefront were Aave, Stellar, and Polkadot, which raked in about $2.9 million, $2.7 million, and $1.6 million respectively. Furthermore, Cardano, Litecoin, and Chainlink also experienced inflows of around $1.2 million, $0.7 million, and $0.4 million respectively during the same timeframe.

Switzerland Tops Outflows

As a researcher examining geographical investment trends, I’ve found that the United States led with an impressive $79 million inflow over the past week. Germany followed closely behind with a significant $52.4 million influx. Additionally, Canada, Brazil, and Australia also recorded inflows of $37.1 million, $21.9 million, and $10.3 million, respectively.

For the past week, Switzerland experienced the largest withdrawal with a total of $85.3 million. Remarkably, this trend was also observed in Hong Kong and Sweden, where they recorded outflows amounting to $36.6 million and $33.2 million respectively.

Read More

2025-01-13 21:10