Institutional investors unloaded $101.5 million worth of digital asset products last week “in anticipation of tight monetary policy” from the US Federal Reserve according to CoinShares.
US inflation was 8.6% year-on-year at the end of May, indicating a return to levels not seen since 1981. As a result, the market expects the Fed to take significant action to derail inflation, with some traders Pricing in three price increments of 0.5% By October.
According to the latest developments Version According to CoinShares’ weekly digital money inflows report, outflows between June 6 and June 10 were led mainly by investors from the Americas, with a value of $98 million, while Europe was only $2 million.
Products offering the two largest crypto assets, Bitcoin (BTC) and Ethereum (ETH), account for almost all outflows at $56.8 million and $40.7 million apiece. The numbers to date also paint a dismal figure of $91.1 million in Bitcoin product outflows and $72.3 million in total ETH product outflow.
What has driven Bitcoin into a “crypto winter” over the past six months can largely be explained as a direct result of increasingly hawkish rhetoric from the US Federal Reserve.
While CoinShares suggested that Bitcoin was pushed to crypto winter, year-to-date (YTD) inflows of BTC investment products remain at $450.8 million. In comparison, funds offering to transact with ETH have seen significant inflows to date of $386.5 million, indicating that sentiment among institutional investors continues to strongly favor digital gold.
The report also highlighted that the total assets under management (AUM) of Ether funds “has decreased from its peak of $23 billion in November 2021 to $8.7 billion” as of last week.
Notably, institutional investors seem to have offloaded their BTC and ETH products before most The latest price massacre Happened for both assets.
Related: Bitcoin Price Drops to Lowest Level Since May as Ethereum Market Trades 18.4% Loss
According to CoinGecko data, between June 6 and June 10, the price of BTC and ETH fell by 4.7% and 5.9% each. However, since June 11, BTC and ETH have fallen by about 25.7% and 33.2%, respectively.
Aside from the outflows of BTC and ETH, the multi-asset funds saw an outflow of $4.7 million, and the Bitcoin shorts recorded a negligible outflow of $200,000. At the same time, investors have also moved away from adding to altcoin positions.
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