Hedge funds pulled out a record $ 142 million in cryptocurrencies last week
Investors pulled record funds from crypto hedge funds when crypto markets held their breath last week to hear news from the Fed.
According to CoinShares, crypto fund outflows in the seven days ending December 17 totaled $ 142 million for the first time in 17 weeks. The largest outflow to date was recorded in early June when withdrawals totaled $ 97 million. After this time, however, there was also a jump in market growth (upward trend) from July to the present day.
Hedge funds focused on Bitcoin, the world’s largest cryptocurrency by market capitalization, saw $ 89 million in outflows last week. That was a reversal of $ 145 million in inflows a week earlier.
The report identified several factors that contributed to the increase in cash flow.
CoinShares says there have been significant outflows on all risk assets, not just digital ones. One reason could be recent signals from the US Federal Reserve that it is accelerating the withdrawal of monetary stimulus measures that have helped raise asset prices and inflation over the past two years.
The report notes that total crypto fund inflows this year hit a record $ 9.5 billion, dwarfing $ 6.7 billion in 2020.
ETH funds saw record outflows of $ 64 million last week. The SOL fund had $ 6.7 million in outflows while the DOT-related fund had $ 2.5 million in purchases.
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