Digital asset markets have been whipsawed over the past two weeks. Sentiment has shifted sharply after drawing nearly $2 billion in crypto inflows on optimism around potential Fed rate cuts.
Last week, $812 million exited investment products amid stronger-than-expected US macro data.
Crypto Outflows Reach $812 Million As Macro Data Shakes Confidence
SponsoredThe latest CoinShares report indicates crypto outflows reached $812 million last week. This marks a notable reversal after crypto inflows approached the $2 billion mark in the week ending September 20.
Bitcoin saw $719 million in outflows, while Ethereum registered $409 million. This put a near-halt to the pioneer crypto’s otherwise strong year-to-date (YTD) inflows of $12 billion.
Interestingly, there was no corresponding surge in short-Bitcoin products. This may mean that the retreat was driven by caution rather than conviction in a sustained downturn.
Meanwhile, Ethereum’s sharp reversal comes just one week after the asset attracted $772 million in inflows. This downturn shows the volatility of investor sentiment around the second-largest crypto by market cap.
SponsoredStill, not all digital assets suffered. Solana stood out with $291 million in inflows, buoyed by the anticipation of upcoming US ETF launches.
XRP also drew $93.1 million, reflecting speculation that altcoins may benefit from diversification flows as institutional products broaden.
Notwithstanding, the contrast is impossible to ignore. While Bitcoin and Ethereum remain sensitive to shifting macro narratives, assets like Solana are increasingly positioned as growth plays tied to product innovation and regulatory milestones.
Shifting Economic Signals Turn Optimism Into Renewed Market Caution
SponsoredThe reversal comes as revised US GDP and durable goods figures undercut expectations for multiple interest rate cuts in 2025.
Traders betting on looser monetary policy just days earlier now face a more hawkish outlook, denting risk appetite.
This explains why the US bore the brunt of the exodus, recording $1 billion in outflows. It also highlights how negative sentiment was largely confined to American investors adjusting to shifting rate expectations.
A week earlier, US investors had been among the most aggressive buyers, driving inflows on optimism that the Fed was preparing to ease policy.
That whiplash shows how fragile confidence remains, with macro headlines able to swing positioning fast.
The pullback mirrors how tightly crypto remains tied to the macroeconomic cycle, even as it pushes toward mainstream legitimacy.
Despite the weekly setback, cumulative flows remain resilient. YTD inflows stand at $39.6 billion, close to last year’s record of $48.6 billion. Meanwhile, September alone has seen $4 billion added.
That backdrop suggests that while sentiment wavered, structural interest in digital assets remains intact.
