The rally did not emerge from retail excitement or online speculation. Instead, it stemmed from macroeconomic unease following the US government shutdown and disappointing employment data.
Investors appeared to interpret both as warning signs about the country’s fiscal resilience and the Federal Reserve’s policy direction.
James Butterfill, head of research at CoinShares, explained that the inflows reflected a delayed investor reaction to the Federal Open Market Committee’s recent rate cut and current US government events.
According to him:
“We believe this was due to a delayed response to the FOMC interest rate cut, compounded by very weak employment data, as indicated by Wednesday’s ADP Payroll release, and concerns over US government stability following the shutdown.”
This resulted in a wave of capital seeking refuge in assets perceived as both liquid and resilient.
The CoinShares report suggested that investors appear to be treating digital assets not as speculative plays but as macro hedge instruments that respond to fiscal turbulence and liquidity shifts.
After weeks of redemptions, the asset drew $1.48 billion in new capital, lifting its year-to-date total to $13.7 billion. Notably, this is nearly triple its total inflows for last year.
These inflows show that crypto markets are no longer reacting to hype but to macro signals, including liquidity trends, rate policy, and institutional sentiment.
