US Digital Asset Outflows Reach $721M Amid Rate Cut Uncertainty, Europe Shows Resilience

Digital asset investment products experienced substantial outflows totaling $72 million, matching the largest recorded outflow set in March this year. According to CoinShares, this negative sentiment was influenced by stronger-than-expected macroeconomic data from the previous week, which heightened the likelihood of a 25 basis point (bp) interest rate cut by the US Federal Reserve. However, daily outflows decelerated later in the week as employment data fell short of expectations, leaving market opinions on a potential 50bp rate cut highly divided. The markets are now anticipating Tuesday’s Consumer Price Index (CPI) inflation report, with a 50bp cut more probable if inflation falls below expectations.

US Outflows and European Resilience

The outflows were predominantly concentrated in the US, which saw a staggering $721 million in outflows, alongside Canada, which experienced outflows of $28 million. In contrast, sentiment in Europe remained more positive, with Germany and Switzerland recording inflows of $16.3 million and $3.2 million, respectively.

Bitcoin and Ethereum Performance

Bitcoin (BTC) faced significant outflows totaling $643 million, whereas short-bitcoin products saw minor inflows of $3.9 million. Ethereum (ETH) also experienced outflows amounting to $98 million, primarily from the incumbent Grayscale Trust, while inflows from newly issued ETFs have almost completely dried up.

Solana’s Positive Momentum

Conversely, Solana (SOL) stood out with the largest inflows of any digital asset, totaling $6.2 million, indicating a positive sentiment towards the asset despite the broader negative trends.

For more details on this report, visit the original source on CoinShares.

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