Bitcoin Inflows Reach $543 Million Following Powell’s Rate Cut Hint
In the last week, digital asset investment products have witnessed a substantial uptick, with total inflows reaching $533 million, as reported by CoinShares. This increase represents the most significant inflows observed over a five-week period, primarily fueled by remarks made by Federal Reserve Chairman Jerome Powell during the Jackson Hole Symposium, where he alluded to possible interest rate reductions.
**Bitcoin (BTC) Dominates Inflows**
Bitcoin (BTC) emerged as the foremost recipient of these inflows, drawing in a remarkable $543 million. A significant portion of these inflows occurred on Friday, immediately following Powell’s remarks, effectively illustrating Bitcoin’s responsiveness to shifts in interest rate expectations. This recent surge reinforces Bitcoin’s perceived function as a safeguard against macroeconomic uncertainties.
**Ethereum (ETH) and Other Assets**
Conversely, Ethereum (ETH) experienced outflows amounting to $36 million in the preceding week. However, it is worth noting that newly introduced Ethereum ETFs, which launched a month prior, have attracted considerable inflows totaling $3.1 billion, providing some counterbalance to the $2.5 billion in outflows registered by the Grayscale Ethereum Trust.
Furthermore, investment products related to blockchain equities have reported inflows for three consecutive weeks, accumulating $4.8 million. This pattern suggests a rising investor appetite for companies engaged in blockchain technology.
**Regional Analysis**
From a regional perspective, the United States led the charge with inflows of $498 million. Hong Kong and Switzerland were also notable contributors, with inflows of $16 million and $14 million, respectively. In contrast, Germany reported minor outflows totaling $9 million, categorizing it as one of the few nations experiencing a net outflow year-to-date.
Despite lower trading volumes compared to recent periods, market activity remained robust with total volumes for the week recorded at $9 billion.
For further details and insights, readers are encouraged to visit the CoinShares blog.
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