According to asset management CoinShares, investors withdrew $621 million from bitcoin investment products last week due to conflicting U.S. economic signals. The losses in BTC were the only factor contributing to net $600 outflows of $600 million from investment products across the larger digital asset ecosystem. The highest number since March 22 was this one. As usual, Grayscale’s GBTC was most negatively impacted, with $273 million in withdrawals.
According to CoinShares on Monday, a large number of altcoins, including ETH, LIDO, and XRP, saw slight inflows offset by the outflows. When it was announced that U.S. inflation was flat for the month of May, the Consumer Price Index (CPI) statistics surpassed forecasts. The Federal Open Market Committee (FOMC) of the Federal Reserve, however, quickly spoiled the good news by maintaining its benchmark rate range at 5.25%–5.50%. Its forecast for the economy called for just one rate drop of 25 basis points this year.
This hawkish attitude hurt bitcoin, which fell to $65,100 on Friday, its lowest level in four weeks. When this article was written, Bitcoin was worth $66,000. There has been a 1.75% decrease in the CoinDesk 20 Index (CD20), which gauges the performance of the larger digital asset market.