- XRP secures $8.5 million in inflows, outperforming Bitcoin and Ethereum.
- Digital asset investment products face $415 million outflows after 19 weeks of inflows.
The crypto market just hit a pretty rough patch. The “party” that’s been going on for the last 19 weeks finally came to an end. A massive $415 million flew out of crypto investment products. The timing makes sense, considering what’s happening with the Fed, which is still talking tough on inflation, especially after seeing those higher-than-expected inflation numbers.
But while big players like Bitcoin and Ethereum are watching money head for the exits, XRP is swimming against the current, pulling in $8.5 million in new investments.
Market Sentiment Shifts as Outflows Dominate
The latest numbers from CoinShares are painting quite the picture. Bitcoin took it on the chin with $430 million heading out the door, and Ethereum wasn’t far behind, losing $7.2 million.
But not everyone’s feeling the blues, Solana(SOL) and XRP are having the opposite. Solana led the pack with $8.9 million in inflows, with XRP right behind at $8.5 million. Some other altcoins are showing signs of life too. Sui pulled in $6 million, while Cardano and Litecoin managed to attract $1.9 million and $1.2 million respectively.
The global picture is pretty interesting. The U.S. saw the biggest exit with $464 million heading out, and that’s even with the SEC warming up to altcoin ETFs! But over in Europe, Germany’s showing some love for crypto, bringing in $21 million. Switzerland and Canada are also staying positive with $12.5 million and $10.2 million in inflows. However, things aren’t so rosy in Hong Kong and Brazil, where they lost $4 million and $2.1 million respectively.
Fed’s Aggressive Policies and Rising Inflation Spark Market Uncertainty
The Federal Reserve’s cautious approach to interest rate cuts and the latest Consumer Price Index (CPI) report have fueled market uncertainty. Fed Chair Jerome Powell emphasized that the central bank sees no urgency to change its policy stance, citing a strong economy. He stated, “Our policy stance is now less restrictive than it had been, and the economy remains strong.
We do not need to be in a hurry to adjust our policy stance.” Meanwhile, January’s CPI report revealed a 3% inflation rate, up from 2.9% in December, with a monthly increase of 0.5%, surpassing expectations.
These developments have increased concerns about a potential bear market, leading to significant outflows in digital asset investments. Despite XRP’s impressive inflows, its price remains under pressure, trading at $2.61 with a 2.52% decline over 24 hours and a 15% drop over the past month. However, the token has shown resilience with an 11% weekly increase.
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