Crypto Investment Products Record $352M Weekly Outflows Despite Strong Year-to-Date Performance

Crypto funding merchandise skilled $352 million in weekly outflows as Federal Reserve rate-cut optimism failed to spice up digital asset sentiment, with Ethereum main the exodus at $912 million whereas Bitcoin attracted $524 million in inflows.

CoinShares’ report reveals buying and selling volumes dropped 27% week-over-week, suggesting a cooled urge for food for digital property regardless of enhancing prospects for September rate of interest cuts.

Year-to-date inflows stay sturdy at $35.2 billion, working 4.2% forward of final yr’s whole.

Regional Divergence Amid Fed Uncertainty

The United States recorded $440 million in outflows, whereas Germany and Hong Kong noticed inflows of $85.1 million and $8.1 million, respectively.

Ethereum merchandise skilled day by day outflows throughout seven consecutive buying and selling days spanning a number of ETP issuers.

According to SosoValue, Spot Ethereum ETFs posted a document $788 million in weekly outflows, with no single fund recording internet inflows.

Bitcoin spot ETFs contrasted with $246 million weekly inflows, marking two consecutive weeks of constructive flows.

Solana prolonged its streak to 21 consecutive weeks of inflows totaling $1.16 billion yr to this point, whereas XRP reached $1.22 billion over the identical interval.

Both property proceed attracting regular weekly inflows of $16.1 million and $14.7 million, respectively.

The outflows occurred regardless of weak August payroll knowledge that strengthened price minimize expectations. U.S. job growth slowed sharply, with unemployment rising to 4.3%, the best stage since 2021, strengthening the case for financial easing.

According to Reuters, Standard Chartered has revised its projection to count on 50 foundation level cuts at September’s Federal Open Market Committee assembly, doubling its earlier forecasts.

Markets value in a 90% chance of 25-basis-point reductions with a ten% likelihood of bigger cuts.

Similarly, Morgan Stanley and Deutsche Bank preserve that August employment knowledge wasn’t weak sufficient for 50-basis-point cuts, although consecutive assembly reductions stay potential.

Fed Chair Jerome Powell previously indicated that rate cuts were possible whereas cautioning about persistent inflation threats.

Traditional Markets Rally While Crypto Cools

Stock markets responded positively to price minimize optimism, with S&P 500 futures gaining 0.2% on Monday following weak employment knowledge.

European and Asian shares rose 0.3% and 0.6%, respectively, as Treasury yields held at decrease ranges.

Gold surged to document highs above $3,630 per ounce, gaining 38% yr to this point after a 27% enhance in 2024.

Lower borrowing prices improve non-yielding bullion attraction whereas geopolitical uncertainty drives safe-haven demand amid Fed independence issues.

China’s central financial institution prolonged gold purchases to 10 consecutive months in August as a part of greenback diversification efforts.

Additionally, Goldman Sachs initiatives gold may attain $5,000 per ounce if Federal Reserve independence deteriorates and buyers shift from Treasuries.

The Trump administration strikes to exempt gold bullion from country-based tariffs, formalizing earlier customs rulings.

Political uncertainty in Japan and France contributed to greenback weak spot regardless of rate-cut expectations supporting conventional danger property.

Oil costs climbed greater than 2% after OPEC+ agreed to slower output will increase from October amid weaker international demand expectations.

Brent crude and West Texas Intermediate each posted sturdy positive aspects following the manufacturing adjustment announcement.

Industry Outlook Amid Rate Cut Cycle

Earlier this month, Crypto.com CEO Kris Marszalek expected a strong fourth-quarter performance if September price cuts materialize, citing improved liquidity circumstances for danger property.

This projection got here because the alternate generated $1.5 billion in income final yr with a $1 billion gross revenue.

However, late final month, Santiment warned that social media dialogue of Federal Reserve price cuts reached an 11-month peak, traditionally indicating euphoric ranges previous market corrections.

Rising Fed price minimize chatter could also be dangerous for crypto, as Santiment warns social sentiment hits an 11-month peak, suggesting a possible market prime forward.#Bitcoin #FedRatehttps://t.co/sIEJBJO2no

— Cryptonews.com (@cryptonews) August 24, 2025

Bitcoin alternate provide accumulation has risen by roughly 70,000 cash since June.

Ethereum technical indicators recommend warning regardless of sturdy value efficiency, with short-term MVRV approaching 15% and long-term readings at 58.5%.

These ranges traditionally correspond with profit-taking exercise and potential retracements.

Manufacturing PMI knowledge may affect rate-cut timing, with forecasts anticipating ISM Manufacturing PMI at 48.9 versus the earlier 48.0. Levels under 49.5 sometimes prolong correction durations whereas enhancements help restoration narratives.

Amid this fed rate-cut optimism, European Central Bank President Christine Lagarde warned, in regard to Trump’s threats to the Fed chair, that undermining Fed independence would create “very severe hazard” for international financial stability.

She believes that political management over financial coverage carries “very worrying” implications for worldwide markets.

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