Crypto investments saw outflows of $147 million last week, breaking a steady streak of positive inflows since September 9.

The shift in sentiment comes amid signs of a booming U.S. economy. It also dampens previously concentrated expectations of significant rate cuts by the Federal Reserve.

Crypto investment inflow streak halted

A report from CoinShares shows that outflows from digital assets reached $147 million in the past week. Bitcoin was at the forefront of negative flows, recording outflows of $159 million. Ethereum (ETH) also saw outflows of $28.9 million.

With the US leading for exits in regional metrics, the survey attributes the shift in sentiment to robust economic data in the country.

Read more: How to make money with cryptocurrencies

“Digital asset investment products saw smaller outflows totaling $147 million in the past week. Better-than-expected economic data last week, reducing the likelihood of significant rate cuts, is the likely reason for the weaker sentiment among investors,” a paragraph in the report reads.

A highlight of the U.S. economic data over the past week was Friday’s positive jobs report. The U.S. economy added 254,000 nonfarm payrolls in September, nearly double the 142,000 reported in August. That number topped economists’ forecasts of up to 140,000 jobs.

Crypto Investment Exits. Source: CoinShares

The unemployment rate also fell to 4.1%, defying expectations of 4.2%, similar to August data. Strong job growth and rising wages signal a tighter labor market, which could put further pressure on inflation.

These reports put U.S. jobs data back in focus as the Federal Reserve considers its next interest rate decision. The Fed's dual mandate includes maximum sustainable employment and price stability.

Fed Interest Rate Probabilities. Source: CME Fed Watchtool

In response, the CME FedWatch Tool shows an 86.3% probability of a 50 basis point cut (0.5%), compared to 13.7% for a 25 basis point cut. Following the latest 50 basis point cut, the market expects another significant policy adjustment to address economic pressures.

Economic indicators boost Bitcoin

However, traders should monitor additional signals from the Fed and key economic data this week, including the Consumer Price Index (CPI), Producer Price Index (PPI) and initial jobless claims. If the data points to a strengthening economy, the odds could shift to a 25 basis point cut in November.

While Bitcoin and Ethereum saw negative outflows, multi-asset investment products (multi-coin) extended their streak to 16 consecutive weeks of inflows, totaling $29 million last week. This continued interest comes as macroeconomic data paints a mixed picture for cryptocurrencies.

Positive economic indicators, such as strong job growth and falling inflation, typically boost risk assets like Bitcoin. However, rising oil prices and geopolitical tensions in the Middle East are fueling fresh concerns about inflation, adding uncertainty to the market.

These dynamics help explain Bitcoin’s stagnation around the $63,000 mark as investors turn to multi-asset products.

“Since June, multi-asset products have been a favorite among investors who prefer to invest in a diversified basket of assets rather than individual assets,” the CoinShares report concluded.

Data from BeInCrypto shows Bitcoin trading at $62,988, reflecting a modest 1.38% gain since the opening of Monday’s session.

The article Crypto investment outflow hits $147 million in a week was first seen on BeInCrypto Brasil.