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Crypto outflows reach $147M amid strong US jobs data

Crypto outflows reach $147M amid strong US jobs data

GrafaGrafa2024/10/08 02:30
By:Isaac Francis

Last week, cryptocurrency investment outflows totaled $147 million, breaking a streak of positive flows that had persisted since September 9.

This shift in market sentiment is largely attributed to strong U.S. economic data, which has dampened expectations of significant interest rate cuts by the Federal Reserve.

According to a CoinShares report, Bitcoin (CRYPTO:BTC) experienced the largest outflows, with $159 million exiting the market.

Ethereum also saw $28.9 million in outflows, further contributing to the negative trend.

While these outflows affected major assets, multi-asset investment products continued to attract inflows, showing some resilience in the broader digital asset market.

The report explains that the strong U.S. jobs data has influenced investor behavior, reducing the likelihood of substantial rate cuts by the Federal Reserve.

As a result, investor sentiment toward digital assets has weakened.

"Digital asset investment products saw minor outflows totaling $147 million last week. Higher-than-expected economic data last week, reducing the probabilities for significant rate cuts, are the likely reason for the weaker sentiment amongst investors," the report stated.

Regionally, the U.S. led in outflows, highlighting the global impact of the country's economic performance on the crypto investment landscape.

The robust job growth data signals a healthy economy, which could continue to influence the outlook for cryptocurrency investments in the coming months.

With Bitcoin and Ethereum (CRYPTO:ETH) experiencing substantial outflows, market participants are closely watching how future economic data and Federal Reserve policy decisions will shape investor sentiment toward digital assets.

The interruption of the recent positive flow trend indicates how sensitive the crypto market remains to macroeconomic factors.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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