Bitcoin has held strong above the $60,000 mark following the Federal Reserve’s 50 basis point interest rate cut, and analysts now expect further gains for BTC. While Bitcoin’s price remained relatively stable over the weekend, CoinShares released its weekly crypto report, shedding light on significant market trends.
The Fed’s Impact on Bitcoin
According to CoinShares, crypto investment products saw $321 million in inflows last week, driven largely by the Fed’s actions.
“Crypto investment products saw their second consecutive week of inflows, totaling $321 million.”
“This increase was likely due to the Federal Open Market Committee’s (FOMC) decision to cut the interest rate by 50 basis points.”
Ethereum Continues to See Outflows
When looking at individual crypto funds, the majority of inflows were directed towards Bitcoin. BTC saw $284 million in inflows, while Ethereum (ETH) continued to experience outflows, with $28.5 million leaving Ethereum-based funds.
Meanwhile, Bitcoin Short funds, which are designed to profit from Bitcoin’s decline, also saw a $5.1 million outflow as investors adjusted their positions.
In contrast, Solana (SOL) recorded $3.2 million in inflows, and Litecoin (LTC) saw a smaller inflow of $0.2 million.
“Bitcoin was the primary focus, attracting $284 million in inflows. However, recent price movements also resulted in $5.1 million flowing into Short Bitcoin products.”
“Ethereum experienced its fifth consecutive week of outflows, totaling $29 million last week, driven by continued outflows from the Grayscale Trust and weak demand for newly launched ETFs.”
“Solana, on the other hand, continued its steady run with $3.2 million in weekly inflows.”
Regional Fund Flows
Regionally, the United States led the way with $277 million in inflows. Switzerland followed with $63.4 million, and Brazil ranked third with $1.4 million in inflows. However, Germany saw $9.5 million in outflows, while Canada experienced $2.3 million in outflows.
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