Crypto products witnessed massive outflows after the August unemployment rate report. The investment products related to crypto witnessed the biggest outflows last week since March. According to the fourth digital assets report by CoinShares, crypto ETFs have recorded an out flow of $725. 7 million in outflows, mainly as a result of lower reported US Nonfarm Payroll (NFP) numbers.
According to the report, these outflows were triggered by expectations of a 25 basis point reduction of interest rates by the US Federal Reserve in September. As has been observed, the lackluster US employment figures ultimately led investors in the crypto ETFs to trim their exposure.
First, the US experienced outflows of $721 million, while Canadian investors recorded $28 million in outflows. However, there was a different trend observed in Europe where Germany and Switzerland were found to have received $16. Bitcoin ETFs were the most affected digital assets for they saw a massive $643 million in outflows. The price of Bitcoin itself has experienced a freefall to below $54,000 though it edged up slightly on Monday. This price dip occurred after the release of the August NFP report, which showed a 4. 2% unemployment they desire but slow economic growth and below-par employment increase. Investors are now focusing on further US data scheduled for Wednesday, which is the Consumer Price Index (CPI). Therefore, CoinShares says that if the latest CPI report disappoints, there may be a means of implementing a more significant 50 bps rate cut.
Another potential influencer of the market is the next debate between the US presidential candidates; Trump expressed his positive attitude toward Bitcoin and the growth of the BTC sector.
Conversely, the Bitcoin ETFs experienced outflows whereas, the short-bitcoin ETFs registered an inflow of $3. Whereas the number of put options reached 9 million, pointing to bearish sentiment. In terms of altcoins, products related to Solana received the most with $6. 2 million; that same day, Ethereum experienced a net outflow of $98 million.
The market continues to be sensitive to macroeconomic information as well as any policy shifts, with future occurrences expected to influence the direction of investment in digital assets in the near term.
