Post-election market shift sees $48M in crypto inflows

Digital asset investment products experienced a notable shift last week, with a total inflow of $48 million, marking a significant change following the release of key macroeconomic data.

The early part of the week saw nearly $1 billion enter the market, but this was followed by outflows of $940 million, indicating a volatile response to economic indicators and the Federal Reserve's minutes, which suggested a robust US economy and a hawkish monetary stance.

CoinShares reported that the post-US election optimism may be fading as macroeconomic factors regain their influence over asset prices.

Bitcoin (CRYPTO:BTC) led the inflows with $214 million, maintaining its status as the top-performing digital asset with year-to-date inflows totaling $799 million.

However, it also faced substantial outflows later in the week.

Ethereum (CRYPTO:ETH) faced challenges, registering outflows of $256 million, attributed to broader tech sector issues rather than specific concerns about the asset itself.

In contrast, Solana (CRYPTO:SOL) showed resilience with an influx of $15 million.

XRP (CRYPTO:XRP) attracted significant attention with inflows of $41 million, largely driven by recent political and legal developments as the January 15 SEC appeal deadline approaches.

Multi-asset products also saw inflows of $21.1 million, while altcoins like Aave (CRYPTO:AAVE), Stellar (CRYPTO:XLM), and Polkadot (CRYPTO:DOT) recorded modest investments despite overall lackluster performance.

Geographically, the US led with inflows of $79 million, followed by Germany at $52.4 million.

Conversely, Switzerland experienced the highest outflows at $85.3 million, alongside notable withdrawals from Hong Kong and Sweden.

"This suggests that the post-US election honeymoon is over, and macroeconomic data is once again a key driver of asset prices," stated CoinShares' James Butterfill.