Global cryptocurrency investment products ended a 15-week streak of inflows last week, recording a net outflow of $223 million as hawkish U.S. Federal Reserve remarks spurred profit-taking and dented investor confidence.
Hawkish Fed Comments Trigger Profit-Taking
According to a weekly report by CoinShares, the week began with $883 million in inflows but saw a sharp reversal in the latter half. The pivot followed the Federal Open Market Committee (FOMC) meeting, where upbeat U.S. economic data and Jerome Powell’s cautious tone lowered expectations for a September rate cut.
“Minor profit-taking is to be expected after $12.2 billion in inflows over the past 30 days,” the report noted, attributing the reversal to macroeconomic signals.
Market data shows the odds of a Fed rate cut in September have dropped from 63% to 40%, further clouding short-term investor outlook.
Bitcoin Products See Largest Weekly Outflow
Bitcoin funds accounted for the lion’s share of losses, shedding $404 million in capital. Historical performance data from CoinGlass shows August is typically a weak month for Bitcoin, with a median return of -7.49%.
Still, analysts remain cautiously optimistic. In a note released Friday, Matrixport suggested Bitcoin may rebound post-summer, especially as U.S. fiscal debates resume after Labor Day.
“Fiscal uncertainty often favors hard assets, and Bitcoin remains central to that narrative,” the note stated.
Ether and Altcoins Buck the Trend
While most crypto funds saw red, Ether (ETH) investment products extended their 15th consecutive week of inflows, pulling in $133 million. The report cited strong sentiment and growing institutional interest in Ethereum ahead of regulatory clarity.
Smaller altcoin ETPs also saw gains:
- XRP: +$31.2 million
- Solana (SOL): +$8.8 million
- Sui (SUI): +$5.8 million
Tariff Shock Fails to Break Market Structure
On Aug. 1, President Donald Trump signed a new executive order imposing tariffs of 15% to 41% on goods from 68 countries, effective Aug. 7. While the move rattled global markets, crypto markets remained stable, holding above a total capitalization of $3.7 trillion.
“The digital asset space is anchored by institutional flows and regulatory optimism,” said Stella Zlatareva of Nexo.
As altcoin sentiment improves and Bitcoin looks to September catalysts, the crypto market continues to navigate volatility with structural resilience.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.