Bitcoin and Altcoin Outflows Hit $1.43B Amid Fed Fears and Trump-Linked Crypto Moves
The latest critical report on Bitcoin and altcoins, released following a volatile week in the cryptocurrency market, highlights a mixed bag of inflows and outflows, with Bitcoin and Ethereum facing significant outflows despite a broader positive sentiment in certain altcoin sectors. According to CoinShares, the total outflow for the week reached $1.43 billion, marking one of the largest outflows since March, driven largely by fears of potential Federal Reserve action. The total trading volume of ETPs climbed to $38 billion, reflecting heightened market activity [1].
Bitcoin experienced the most significant outflow, with $1.03 billion leaving the asset class, while Ethereum saw $440.9 million in outflows. However, the mid-week recovery in Ethereum was more pronounced compared to Bitcoin, possibly influenced by the more dovish tone from Fed Chair Jerome Powell at the Jackson Hole symposium. This tone provided a brief reprieve for altcoins, with several experiencing net inflows. Notably, XRP saw $25 million in inflows, followed by Solana with $12 million and Cronos with $4.4 million. Sui and Toncoin were among the largest losers, with outflows of $12.9 million and $1.5 million respectively [1].
The unexpected movement in Cronos (CRO) caught the market’s attention. This is attributed to a newly announced partnership between Trump Media and Technology Group, the parent company of Donald Trump’s social media platform Truth Social, and the Cryptocom exchange to launch altcoin ETFs. This development sparked considerable speculation and activity in the altcoin space, drawing attention to the potential regulatory and market implications of such products [1].
Regionally, the U.S. led the outflow trend, with $1.31 billion in outflows, followed by Sweden ($135.5 million) and Switzerland ($11.8 million). In contrast, Germany saw a modest inflow of $18.4 million, and Canada recorded $3.7 million in inflows. The regional dynamics reflect the ongoing sensitivity of crypto markets to macroeconomic and regulatory cues, particularly in the U.S. [1].
The report also underscores the continued divergence in performance between Bitcoin and altcoins. While Bitcoin faces ongoing pressure from outflows and regulatory uncertainties, altcoins have shown resilience and, in some cases, gains, particularly those with strong fundamentals and clear use cases. The broader altcoin market appears to be benefiting from speculative flows and the perceived regulatory clarity for certain tokens [1].
The interplay between central bank policy, market sentiment, and specific altcoin developments continues to shape the crypto landscape. With the Fed signaling potential rate cuts, investors are closely watching how these macroeconomic shifts will impact the risk-on environment and, by extension, crypto assets. The coming weeks will likely bring further clarity on whether the current outflows are a temporary correction or a more sustained trend.
Sources:
[1] Weekly Critical Report for Bitcoin and Altcoins Released: While Powell Raises Ethereum and Altcoins, Unexpected Attack Comes from a Trump-Li… (https://coinmarketcap.com/community/articles/68ac943444f0b73e7ad8e8a9/)
