CoinShares, a digital assets manager, reported that cryptocurrency products suffered losses of $600 million last week. According to the latest Digital Asset Fund Flows report from CoinShares, institutional investors are reacting to a Federal Open Market Committee (FOMC) meeting that was more hawkish than expected.
The report states, “Digital asset investment products saw outflows of $600 million, the largest since March 22, 2024. This trend is reminiscent of a previous pattern: a period of significant inflows followed by a more hawkish-than-expected FOMC meeting, leading investors to reduce their exposure to fixed-supply assets.”
CoinShares attributes the losses in the crypto market to the FOMC’s dot plot, which reflects each committee member’s individual opinion on the appropriate interest rate for the central bank at a specific time. The latest dot plot indicates that most committee members do not foresee a decrease in interest rates until next year.
Outflows in the US region amounted to $565 million, while Canada, Switzerland, and Sweden recorded outflows of $15 million, $24 million, and $15 million, respectively. On the other hand, Germany saw inflows of $17 million.
Bitcoin (BTC) experienced the largest outflows of $621 million, followed by Solana (SOL) with a loss of $0.2 million. Ethereum (ETH), Chainlink (LINK), and Litecoin (LTC) received inflows of $13.1 million, $0.8 million, and $0.8 million, respectively.
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Disclaimer: The opinions expressed in this article are not investment advice. It is recommended that investors conduct thorough research before making high-risk investments in Bitcoin, cryptocurrency, or digital assets. All transfers and trades are done at the individual’s own risk, and any resulting losses are their responsibility. The Daily Hodl does not endorse the buying or selling of cryptocurrencies or digital assets, nor is it an investment advisor. Please be aware that The Daily Hodl engages in affiliate marketing activities.
