This marked a significant shift from the trend earlier in the week, which started with $883 million in inflows.
James Butterfill, Head of Research at CoinShares, explained that broader macroeconomic conditions in the US likely triggered the outflow. These include hawkish statements from the Federal Open Market Committee (FOMC) and stronger-than-expected economic data, contributing to negative market sentiment.
Despite weak payroll data later in the week, which hinted at a dovish approach by the Fed, overall market sentiment remained “risk-off,” leading to substantial outflows, particularly on Friday, when over $1 billion exited the market.
Butterfill also pointed out that, over the past 30 days, digital asset investments saw a net inflow of $12.2 billion, which accounts for approximately 50% of the total inflows for the year. He noted that the recent outflow could be attributed to minor profit-taking.
However, Bitcoin’s year-to-date inflows remain robust at around $20 billion. This reflects the top crypto’s continued appeal despite the volatility caused by shifting monetary policies.
ETH’s performance illustrates the strong positive sentiment towards the digital asset, with some Butterfill recently suggesting the onset of an “altseason.”
This is evident in the performance of other altcoins, which also recorded significant flows during the week.
These numbers suggest investors are shifting capital away from Bitcoin to more promising assets, particularly Ethereum and other altcoins.
