Crypto Funds Bleed $360M Following Powell's Speech
Crypto investment funds saw$360 million in outflows following Fed Chair Powell's latest speech. Discover which assets were hit hardest and the market outlook.
Digital asset investment products saw an outflow of us $ 360 million last week after Federal Reserve Chairman Jerome Powell hinted at doubts over future interest rate cuts.
The Bitcoin ETF suffered the hardest hit, losing$946 million, while Solana drew a record$421 million in inflows.
This outflow follows comments from Powell indicating that a rate cut in December is not certain. He warned that loosening policy too quickly could threaten progress on inflation, while slow action could hamper economic growth.
Investors perceived his statements as hawkish, lowering expectations of rapid monetary easing. This signal triggered the withdrawal from digital asset products, especially in the US. US investors led the outflow, attracting US$439 million from crypto products.
Bitcoin suffered the biggest decline, losing US$946 million over the week. This makes Bitcoin the asset most affected by changes in monetary policy.
This timing coincides with a broader risk-off period, as market participants reconsider their expectations of aggressive interest rate cuts.
At the same time, the Bitcoin and Ethereum Spot ETFs are experiencing outflows, reinforcing the divergent momentum of Solana. This suggests that institutional investors now view Solana as a distinct attractive asset.
The launch of the Solana ETF marks an important moment for institutional access to the network, which is praised for its transaction speed and low fees.
Since the beginning of the year, Solana's inflows have reached US$3.3 billion, confirming its status as one of the fastest-growing digital assets among institutions.
Sustained demand demonstrates confidence in the technical strength of the platform and the expansion of its ecosystem, even as broad market challenges persist.
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