Tough Week for the Crypto Economy

The past week brought a net capital outflow from cryptocurrency and other digital asset investment products, with a total of $147 million in divestments.

Cryptocurrency and other digital asset investment products saw a net capital outflow of $147 million over the past week.

This occurred as economic data came in stronger than expected, reducing the likelihood of significant interest rate cuts and impacting market sentiment.

Despite a 15% increase in trading volumes to $10 million in exchange-traded products (ETP), the broader market showed a more subdued trend with lower trading volumes in the crypto industry.

Bitcoin (BTC) was the most heavily impacted asset, seeing outflows of $159 million.

However, products betting against BTC, termed “short-bitcoin,” saw inflows of $2.8 million, indicating interest from some investors in profiting from potential further declines in the leading cryptocurrency's value.

Ethereum also faced a negative outlook with outflows of $29 million.

notably, ETH has faced sustained outflows, highlighting the difficulties in recovering from this situation.

Despite its role in the industry and the broader market, enthusiasm toward Ethereum remained低い compared to periods of higher activity.

In contrast, multi-asset investment products, which include a broad range of cryptocurrencies, showed signs of strength with inflows of $29 million over the past week.

These products marked their sixteenth consecutive week of positive flows, accumulating a total of $431 million since June.

Investors seeking diversification appeared to continue favoring these products over concentrating on individual assets.

Regionally, Canada and Switzerland showed a positive outlook with capital inflows of $43 million and $35 million, respectively.

However, markets like the United States, Germany, and Hong Kong faced a different scenario with substantial outflows of $209 million, $8.3 million, and $7.3 million, respectively.

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