Cryptocurrency funds saw a weekly net outflow of $454 million as market sentiment turns cautious

Source: PortaldoBitcoin Original Title: Cryptocurrency Funds Record Outflows of US$ 454 Million and Revert Positive Start to the Year Original Link: https://portaldobitcoin.uol.com.br/fundos-de-criptomoedas-tem-saidas-de-us-454-milhoes-e-revertem-inicio-de-ano-positivo/ Cryptocurrency funds recorded a net outflow of US$ 454 million (approximately R$ 2.44 billion) last week, marking four consecutive days of capital outflows, totaling US$ 1.3 billion, which nearly offset the US$ 1.5 billion net inflow recorded in the first two days of the year. This analysis is based on data released by CoinShares on Monday.

“This shift in sentiment mainly stems from investors’ growing concerns over the increasingly unlikely prospect of a Fed rate cut in March, influenced by recent macroeconomic data releases,” the company stated in the report.

Regionally, the United States was the only market showing strong negative sentiment, with outflows of US$ 569 million. Brazil also experienced outflows, but the result was essentially flat, with a slight negative value of US$ 50,000.

In contrast, several other countries saw inflows, led by Germany with US$ 58.9 million, followed by Canada with US$ 24.5 million, and Switzerland with US$ 21 million.

Bitcoin Leads the Decline

CoinShares data shows that Bitcoin was most affected by negative sentiment, with outflows of US$ 405 million last week, but there was also a flow of US$ 9.2 million out of Bitcoin short positions, indicating mixed market signals.

Ethereum experienced a total outflow of US$ 116 million during this period, with multi-asset products seeing outflows of US$ 21 million. Outflows from a major exchange and Aave products were smaller, at US$ 3.7 million and US$ 1.7 million respectively.

Positive sentiment continued to support XRP, Solana, and Sui, which attracted inflows of US$ 45.8 million, US$ 32.8 million, and US$ 7.6 million respectively.