Between March 16 and 20, market participants invested $230 million in cryptocurrency investment products, significantly lower than in previous weeks, according to a report by CoinShares.
Analysts attribute the negative trend to the March 18 meeting of the Fed, during which the regulator maintained the key rate in the range of 3.5-3.75%. Investors viewed the decision as a “hawkish pause.”
This conclusion is supported by data: in the first two days, funds attracted $635 million, but after the FOMC meeting, they lost $405 million. By Friday, the outflow had slowed.
Market players also remain cautious due to ongoing military actions in the Middle East.
Fed Chair Jerome Powell confirmed that the consequences of events in Iran for the U.S. economy remain uncertain. The oil rally due to supply disruptions in the Strait of Hormuz could lead to rising inflation, negatively affecting risk assets.
“But it is still too early to speak about the scale and duration of the potential impact on the economy,” added Powell.
All regional exchanges ended the past week with a net capital inflow. CoinShares described the results as “encouraging.” The U.S. led with $153 million, followed by Germany ($30.2 million) and Switzerland ($27.5 million).
Among assets, the majority of inflows went to Bitcoin — $219 million. Structures allowing for shorting cryptocurrency attracted $6 million. According to experts, this indicates a “persistent divergence of opinions regarding the prospects” of digital gold.
Solana funds received $17 million, marking the seventh consecutive week of positive dynamics. During this period, the total amount raised reached $136 million.
“Recently, the asset has been among the most in demand,” commented CoinShares.
Ethereum-based products lost $27.5 million, ending a three-week session of capital inflow.
Earlier, from March 9 to 13, inflows into cryptocurrency-focused investment products amounted to $1.06 billion.