Geopolitics and the Fed Flush $414 Million From Crypto Funds in a Week

Digital asset investment products saw their first weekly outflows in over a month, totaling $414 million, reversing five consecutive weeks of inflows. This pullback was attributed to rising geopolitical tensions, specifically related to the Iran conflict, and a market pivot away from anticipated Federal Reserve rate cuts toward expectations of potential hikes. The United States accounted for the majority of the outflows ($445 million), indicating a risk-off sentiment among American investors, although European markets like Germany and Canada saw minor inflows. Ethereum suffered the largest losses, shedding $222 million, pushing its year-to-date flows negative, partly due to regulatory uncertainty surrounding the Clarity Act. Bitcoin also saw $194 million in outflows but maintained strong year-to-date inflows of $964 million, suggesting intact institutional conviction. XRP was an outlier, attracting $15.8 million in inflows, positioning it as a relative safe haven.

(Source：BeInCrypto)