Crypto Funds Experience $454 Million Outflow as Fed Rate Cut Prospects Dwindle

Last week, Bitcoin led to $404 million in outflows from crypto ETPs, while the US market faced significant losses amid fading rate-cut expectations.

In a significant shift, cryptocurrency funds faced considerable withdrawals totaling $454 million, primarily spurred by diminishing hopes for a Federal Reserve interest rate cut. Bitcoin, in particular, was responsible for a staggering $404 million of these outflows from crypto exchange-traded products (ETPs) during the previous week.

The United States market alone witnessed a drastic outflow of $569 million. Concurrently, while Bitcoin struggled, certain altcoins and European funds managed to secure slight inflows, indicating a mixed sentiment across different segments of the cryptocurrency market.