{"id":19822,"date":"2024-12-23T17:21:17","date_gmt":"2024-12-23T15:21:17","guid":{"rendered":"https:\/\/forklog.com\/en\/hawkish-fed-signals-dampen-inflows-to-crypto-funds\/"},"modified":"2024-12-23T17:21:17","modified_gmt":"2024-12-23T15:21:17","slug":"hawkish-fed-signals-dampen-inflows-to-crypto-funds","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/hawkish-fed-signals-dampen-inflows-to-crypto-funds\/","title":{"rendered":"Hawkish Fed Signals Dampen Inflows to Crypto Funds"},"content":{"rendered":"<p>Between December 15 and 21, cryptocurrency investment funds received $308 million, a sharp decline from the $3.2 billion the previous week, according to <a href=\"https:\/\/blog.coinshares.com\/volume-214-digital-asset-fund-flows-weekly-report-4e9b12b00429\">CoinShares<\/a>.\u00a0<\/p>\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" src=\"https:\/\/forklog.com\/wp-content\/uploads\/1-1373.webp\" alt=\"1-1373\" class=\"wp-image-248464\"\/><figcaption class=\"wp-element-caption\">Data: CoinShares.<\/figcaption><\/figure>\n<p>The trend was overshadowed by the largest daily outflow since mid-2022, amounting to $576 million on December 19, following the Federal Reserve&#8217;s hawkish rate cut.<\/p>\n<p>At a press conference, Fed Chair Jerome Powell cautioned that the regulator would take a more cautious approach to easing policy in the future.<\/p>\n<p>Along with the following day, investors reduced their positions in crypto products by approximately $1 billion. Nonetheless, this was insufficient to offset the inflows from the previous three days.<\/p>\n<p>Year-to-date inflows reached a record $44.8 billion.\u00a0<\/p>\n<p>The volume of assets under management fell from a record $167.4 billion to $157.3 billion amid market correction.<\/p>\n<p>Over the past week, investors added $274 million to instruments based on the first cryptocurrency (previously $2 billion), with $39 billion added since the beginning of the year.<\/p>\n<p>Clients directed $0.4 million ($14.6 million) into structures allowing short positions on digital gold.<\/p>\n<p>Inflows into Ethereum funds slowed from $1.09 billion to $51.3 million, continuing a positive trend for the eighth consecutive week.<\/p>\n<p>Investors also put $8.8 million into XRP instruments following a record $145.8 million.<\/p>\n<p>Clients withdrew $8.7 million ($1.7 million) from Solana-based products.<\/p>\n<p>Inflows into funds based on Horizen and Polkadot amounted to $4.8 million and $1.9 million, respectively.<\/p>\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" src=\"https:\/\/forklog.com\/wp-content\/uploads\/2-985.webp\" alt=\"2-985\" class=\"wp-image-248465\"\/><figcaption class=\"wp-element-caption\">Data: CoinShares.<\/figcaption><\/figure>\n<p>Earlier, Santiment predicted Bitcoin&#8217;s return to its peak due to rising <span data-descr=\"Fear, Uncertainty, Doubt \u2014 Fear, uncertainty, and doubt\" class=\"old_tooltip\">FUD<\/span> sentiment.<\/p>\n<p>Bitfinex forecasted the peak of the first cryptocurrency&#8217;s bull market in the third to fourth quarters of 2025, with a target price of $200,000. Bitwise pointed to the same level.<\/p>\n<p>Previously, K33 Research highlighted a high probability of a bull run peak forming on January 17.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Between December 15 and 21, cryptocurrency investment funds received $308 million, a sharp decline from the $3.2 billion the previous week, according to CoinShares.\u00a0 Data: CoinShares. The trend was overshadowed by the largest daily outflow since mid-2022, amounting to $576 million on December 19, following the Federal Reserve&#8217;s hawkish rate cut. At a press conference, [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":19821,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1191,1249,837,1145],"class_list":["post-19822","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-coinshares","tag-federal-reserve-system","tag-horizen","tag-market-analysis"],"aioseo_notices":[],"amp_enabled":true,"views":"13","promo_type":"","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/19822","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=19822"}],"version-history":[{"count":0,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/19822\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/19821"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=19822"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=19822"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=19822"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}