The crypto influx rose to $2 billion last week, bringing positive sentiment from the Federal Reserve’s decision to cut interest rates.
Amidst a strong crypto influx, AUM total reached YTD high of $40.4 billion, bringing the market back on track, matching or slightly exceeding the positive flow of $48.6 billion last year.
Fed rate cuts pushed crypto inflows past $1.9 billion last week
Beincrypto reported last week a move by the Fed to cut interest rates.
Against this backdrop, the dollar has weakened, with stocks and Bitcoin gathering with liquidity-driven optimism.
This led to a noticeable surge in crypto influx, reaching $1.9113 billion last week.
“Last week, Digital Asset Investment products saw a $1.9 billion inflow and last week we received a positive response to the Fed’s ‘Hawkish Cut’,” James Butterfill wrote in his latest Coinshares report.
The data shows that Bitcoin and Ethereum have led to $977 million and $772 million inflows, respectively. Meanwhile, Solana and XRP recorded similar sentiments, attracting positive trends of $127.3 million and $69.4 million, respectively.
Cryptocurrency in last week. Source: Coinshares Report
Meanwhile, this marked a positive trend for the second consecutive week after $3.3 billion was recorded for the week ending September 13th.
However, comparing two consecutive weeks, while investments in Bitcoin products fell from $2.4 billion to $977 million, Ethereum registered a notable surge last week, moving from $645 million to $772 million.
The surge in crypto inflows caused by the Fed’s decision to cut interest rates has led Butterfill to acknowledge investors’ initial caution.
“Investors initially responded with caution to the so-called Hawkish cut, but $746 million came in on Thursday and Friday as the inflow resumed later in the week and the market began to digest the effects of digital assets,” Butterfill added.
On local indicators, the sentiment was very positive, with Hong Kong recording a small outflow. Meanwhile, the US, Switzerland and Brazil all recorded significant crypto influx.
If anything, the positive trends from last week suggest that US economic data will continue to increase Bitcoin and crypto as alternative asset classes.
They point to the enormous role of crypto and digital assets as portfolio diversifying factors and hedges against economic uncertainty.
Signs of continued Traditional Financial (TRADFI) market uncertainty this week could also be ongoing for this week’s crypto influx as multiple Fed officials, including Powell and Stephen Milan, are scheduled to speak this week.
Post-crypto is coming in nearly $2 billion as demand for renewals for Fed rate reduction sparks first emerges in Beincrypto.
