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

Data collected by crypto ETP provider CoinShares indicates that the crypto market witnessed the largest weekly outflows since March amid falling prices.

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

In a Sept. 9 research report, CoinShares head of research James Butterfill attributed this dynamic to stronger-than-expected macroeconomic data from the previous week, which increased speculation about a potential 25 basis point interest rate cut by the U.S. Federal Reserve.

“The markets are now awaiting Tuesday’s Consumer Price Index inflation report, with a 50bp cut more likely if inflation comes in below expectations.”

James Butterfill, CoinShares head of research

The data shows that outflows were mainly concentrated in the U.S., which saw a net withdrawal of $721 million, while Canada-based products witnessed outflows of $28 million. In contrast, European markets showed 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 largest outflows at $643 million, while short-bitcoin had small inflows of $3.9 million. Ethereum (ETH) lost $98 million, mainly from the Grayscale Trust, as exchange-traded fund inflows slowed. Solana (SOL) stood out with $6.2 million in inflows, the highest 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, and outflows falling 65% from 65,847 BTC to 22,802 BTC. Data from Alternative shows that the Crypto Fear and Greed Index hit 26, its lowest point in over a month, signaling heightened investor anxiety and a more cautious market sentiment.