Crypto Funds Lost $454 Million as Fed Rate-Cut Hopes Dim

Crypto funds experienced a sharp $454 million outflow last week, nearly wiping out the $1.5 billion in inflows seen at the start of the year. This reversal is primarily attributed to diminishing hopes for a Federal Reserve interest rate cut in March, following recent macroeconomic data suggesting the Fed may maintain its current policy stance, with CME FedWatch Tool showing only a 5% probability of a cut. The US led the outflows with $569 million, while Bitcoin bore the brunt, seeing $405 million in exits. Despite the broad negative sentiment, selective altcoins like XRP, Solana, and Sui attracted fresh inflows, indicating investors are rotating into high-performing alternatives rather than broadly exiting the market. This recent recalibration follows a strong 2025 where global crypto inflows reached $47.2 billion, led by Ethereum, XRP, and Solana.

(Source：BeInCrypto)