The digital asset market experienced significant outflows after the Federal Open Market Committee (FOMC)’s hawkish stance exceeded market expectations.

The FOMC’s hawkish stance forced investors to reduce their holdings of fixed supply assets, especially Bitcoin, resulting in a total outflow of $600 million from digital asset investment products after the meeting, the largest single-week outflow since March 22, 2024.

Moreover, the recent price decline has further fueled the bearish sentiment, as evidenced by the decline in total assets under management (AuM), which fell from over $100 billion to $94 billion this week.

Bitcoin outflows and market diversification trends

According to CoinShares’ latest Digital Asset Fund Flow Weekly Report, all outflows were concentrated in Bitcoin, with the cryptocurrency seeing $621 million in outflows.

The outflow of funds not only highlights the bearish sentiment towards Bitcoin, but also prompted $1.8 million to flow into Bitcoin short investment products, indicating that investors expect Bitcoin prices to fall further. This sentiment echoes Bitcoin's recent price performance and exacerbates market uncertainty. $BTC

In stark contrast to Bitcoin, Ethereum-based investment products showed inflows, reaching $13.1 million. The altcoin market was not far behind, with LIDO and XRP attracting inflows of $2 million and $1.1 million, respectively. In addition, Litecoin and Chainlink-related investment products each attracted $800,000, while Cardano saw inflows of $700,000. $ETH

While the altcoin market as a whole showed inflows, Solana saw $200,000 in outflows over the past week, which may reflect the different assessments and expectations of different cryptocurrencies.

Despite the market's optimism about altcoin investment products, overall trading volume was low, with $11 billion this week, well below this year's weekly average of $22 billion. However, compared to last year's level of $2 billion per week, this still shows the growth and maturity of the market.

Amid market volatility, digital asset exchange-traded products (ETPs) have shown stability, maintaining a 31% share of trading volume on trusted exchanges worldwide. The stability of this ratio may provide confidence to investors, indicating that the market's long-term interest in digital assets remains.

Analysis of global regional capital flows

In the observation of global regional capital flows, the United States became the country with the largest capital outflows this week, with outflows amounting to US$165 million. This significant outflow reflects market concerns about current economic conditions and monetary policy, as well as investors' reassessment of risk assets.

Following the United States, Switzerland also experienced significant outflows, amounting to $23.7 million. Canada and Sweden each recorded $15 million in outflows, which may point to a broader regional trend of investors withdrawing their investment from digital assets in these regions.

While Hong Kong saw relatively small outflows of just $1.3 million, it still showed that even Asia’s financial hubs were not immune to negative sentiment in global markets.

In contrast to the above countries, Germany showed a trend of capital inflow, reaching $17.4 million. This phenomenon may indicate that the German market has a higher acceptance of cryptocurrencies and other digital assets, or that investors believe that the German market provides better value and opportunities.

Australia and Brazil also recorded inflows of $1.7 million and $0.7 million, respectively. The positive inflows into these countries may reflect investors’ confidence in the economic potential of these regions, as well as optimism about the long-term growth of digital assets. #FOMC #数字资产 #投资损失 #BTC #ETH

in conclusion

The outflow of Bitcoin funds triggered by the FOMC's hawkish stance marks an important turning point in the digital asset market. Investors' diversified strategies and re-evaluation of the potential of different cryptocurrencies indicate that the market is moving towards a more mature and diversified direction. Despite the short-term challenges of declining trading volumes, the long-term growth trend of the market and the continued interest of investors are still evident.

At the same time, regional differences in global capital flows indicate that market sentiment and investment decisions are significantly affected by regional economic environments and policy expectations. However, inflows into Germany, Australia, and Brazil reflect investor optimism about the market potential in these regions and confidence in the long-term value of digital assets.

Looking ahead, as the market adapts to FOMC policies and the cryptocurrency space continues to innovate, it is expected that the digital asset market will continue to maintain its appeal and vitality, providing investors with abundant opportunities and challenges.