Bitcoin News Today: Bitcoin leads $223M crypto outflows as Fed hawkishness spurs investor caution

Last week, the cryptocurrency market experienced significant outflows, led by Bitcoin, as investors reacted to the Federal Reserve's hawkish signals and stronger-than-expected U.S. economic data. CoinShares reported a total outflow of $223 million from cryptocurrency investment products, a notable shift from the $883 million inflow recorded at the start of the week [1].

Bitcoin, which had surged past $115,000 earlier in the year, saw the largest outflow of $404 million during the week. This marked a reversal after experiencing robust inflows of $20 billion year-to-date. The outflow came despite BTC seeing a recovery after a sharp decline, signaling continued uncertainty among investors [1].

In contrast, Ethereum (ETH) maintained a positive momentum, with a net inflow of $133.9 million. This marked the 15th consecutive week of inflows for the second-largest cryptocurrency and reinforced a strong bullish sentiment. Other major altcoins, including XRP, Solana (SOL), and SEI, also benefited from inflows of $31.2 million, $8.8 million, and $5.8 million, respectively [1].

Smaller altcoins also saw varying levels of investor interest. Aave and Sui received inflows of $1.2 million and $0.8 million, respectively, while Sui had previously seen inflows before recording an outflow of $0.8 million [1].

Regionally, the U.S. led in outflows with $383 million, followed by Germany and Sweden with $35.5 million and $33.3 million, respectively. On the other hand, China Hong Kong and Switzerland saw inflows of $170.4 million and $52.4 million, showing regional diversity in investor behavior [1].

The overall market remains in a phase of adjustment, with Bitcoin being the most affected by the broader macroeconomic environment. However, Ethereum and some altcoins continue to attract capital, indicating a potential shift in risk appetite and asset allocation strategies among investors. As the market consolidates, the coming weeks will be critical in determining whether the outflows are temporary corrections or the start of a broader bearish trend.

Source: [1] https://coinmarketcap.com/community/articles/6890b952c655ae7a1f830f61/