Digital Asset Investment Products Post Largest Outflow in Four Years Amidst Fed Uncertainty

Digital asset investment products saw $1.94B in outflows last week, extending a four-week pullback to $4.92B. Bitcoin and Ethereum experienced significant outflows, but positioning remains cautious, with short-Bitcoin products attracting inflows. On-chain behavior aligns with the flow picture, with large whales selling around $5.98B over the past four weeks. Policymakers are split on whether to cut again in December, but upcoming data will be decisive. The drawdown looks like a liquidity-driven reset that could turn into a buying window if easing expectations firm up.