Strong US economic data drives investor withdrawals from crypto products
Following notable inflows, cryptocurrency investment products have faced significant outflows totaling $305 million due to stronger-than-expected US economic data, according to CoinShares' latest Crypto Asset Fund Flow Report released on September 2, News.Az reports citing Cointurk .
What is Happening in the Crypto Market?The report shows that between August 24 and August 31, US investors led the world in the number of sold crypto investment products, with total outflows of $318 million. Germany and Sweden had smaller outflows of $7.3 million and $4.3 million, respectively. On the other hand, Switzerland and Canada saw slight inflows of $5.5 million and $13.2 million, respectively.
On August 30, the US Department of Commerce reported that the Personal Consumption Expenditures (PCE) price index increased by 0.2% month-over-month and 2.5% year-over-year. As consumer spending is seen as a key driver of economic growth in the US, the PCE is considered one of the inflation measures preferred by the US Federal Reserve, which is expected to reduce interest rates for the first time in over four years.
The report came with expected market rate cuts in September. The PCE report implied a 24 basis point cut and reduced the likelihood of a 50 basis point cut.
In recent months, after notable weekly entries, cryptocurrency investment products began seeing significant exits due to strong economic reports in the United States. Crypto asset investment products saw total outflows of $305 million, driven by stronger-than-expected economic data in the US, as stated in the latest Crypto Asset Fund Flow Report published on September 2 by Coinshares.
Details on the Subject
According to Coinshares’ latest report, Bitcoin-focused investment products experienced the largest outflows last week, totaling $319 million. At the same time, short Bitcoin investment products saw a second weekly inflow of $4.4 million, the largest since March 2024.
Crypto investment products in Ethereum saw outflows of $5.7 million, continuing a downward trend despite the launch of the Ethereum ETF in the US on July 23, 2024. The report included the following statement on the subject:
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