Bitcoin investment products experienced significant outflows last week, totaling $621 million, according to asset manager CoinShares. This outflow was a result of mixed economic signals from the U.S., which impacted the broader digital asset ecosystem, leading to a total of $600 million in outflows.
The largest outflows were seen in Grayscale’s GBTC, which lost $273 million. This trend was in stark contrast to minor inflows for alternative cryptocurrencies such as ETH, LIDO, and XRP, as reported by CoinShares.
The U.S. inflation data for May, measured by the Consumer Price Index (CPI), was flat for the month, exceeding expectations. However, the positive news was overshadowed by the Federal Open Market Committee (FOMC) of the Federal Reserve maintaining its benchmark rate range at 5.25%-5.50%. The FOMC’s economic outlook suggested only one 25 basis point rate cut this year, which had a negative impact on Bitcoin prices.
As a result, Bitcoin tumbled to its lowest point in four weeks on Friday, reaching $65,100. Currently, Bitcoin is trading at $66,000, showing no significant changes. The CoinDesk 20 Index (CD20), which tracks the performance of the overall digital asset market, is down by 1.75%.
The recent outflows in Bitcoin investment products reflect the uncertainty and volatility in the cryptocurrency market, influenced by economic indicators and monetary policy decisions. Investors are closely monitoring these developments to gauge the future direction of digital assets and adjust their investment strategies accordingly.
