Bitcoin bled nearly a billion dollars alone last week, single-handedly driving a sector-wide flight of $360 million as Jerome Powell’s “not a foregone conclusion” remark cooled December rate-cut hopes.
Summary
- Bitcoin investment funds saw $946 million in outflows last week, driving a total $360 million crypto retreat after Powell’s rate-cut caution.
- U.S.-listed Bitcoin ETFs led withdrawals, while Solana attracted $421 million in inflows, signaling investor rotation.
- Ethereum, XRP, Sui, and Litecoin posted smaller gains as Germany and Switzerland bucked the trend with regional inflows.
According to a Nov. 3 report by CoinShares Head of Research James Butterfill, digital asset investment products logged $360 million in outflows last week, their largest in over two months.
The U.S. accounted for the bulk of the pullback, with $439 million leaving locally listed funds following Federal Reserve Chair Jerome Powell’s remarks that another rate cut this year was “not a foregone conclusion.” Bitcoin (BTC) exchange-traded products bore the sharpest hit, shedding $946 million as investors reduced exposure to the asset most sensitive to monetary policy shifts.
“We believe that, despite the recent interest rate cut, the hawkish interpretation of Jerome Powell’s remarks weighed heavily on Bitcoin prices, as it remains the digital asset most sensitive to monetary policy developments,” Butterfill said.
Solana shines as Bitcoin stumbles
The outflows from U.S.-listed Bitcoin ETFs were widespread, indicating a broad-based retreat rather than an issue with a single fund. Data reveals the iShares Bitcoin Trust saw outflows of $390 million, while Fidelity’s Wise Origin Bitcoin Fund witnessed a $156 million withdrawal.
Bitcoin’s market performance mirrored that sentiment. The asset traded around $107,727 at press time after dropping more than 3% in 24 hours. BTC is now down roughly 12% over the past month and 15% below its all-time high of $126,198 set on Oct. 6.
While Bitcoin buckled under macroeconomic pressure, other digital assets told a different story. Solana (SOL) emerged as the undeniable standout, with its new U.S. ETFs pulling in a monumental $421 million.
Ethereum (ETH) also managed to attract a modest $57.6 million, though its daily flows revealed hesitant investor sentiment. Beyond the major players, assets like XRP, Sui (SUI), and Litecoin (LTC) saw combined inflows of nearly $54 million, suggesting that capital is actively seeking opportunities beyond the market leader.
Regional data added another layer to the divide. Germany and Switzerland posted inflows of $32 million and $30.8 million, respectively, with Canada and Australia also seeing modest gains.
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