Investments in Bitcoin Funds Dropped After the Fed Meeting
As it became known, this year from October 29 to November 4, about $15.6M had been withdrawn from cryptocurrency investment products. At the same time, the week before, the inflow of funds amounted to $6.1M.
Analysts note the lack of enthusiasm among investors that has been lasting for almost 2 months.
As for related news, on November 2, the Fed announced an increase in the range of the key rate by 75 basis points – up to 3.75-4% per annum. Meanwhile, there was practically no reaction from the cryptocurrency market. And the total capitalization of digital assets decreased only by 0.5%.
However, it was traditional bitcoin funds that suffered the outflow of funds amounting to $13.2M, which almost equaled to the inflow a week earlier.
It is also worth mentioning that $7.1M has been withdrawn from the structures allowing short trades on the first cryptocurrency. And the total volume over the past three weeks has grown to $28M.
Ethereum funds showed positive dynamics, with the inflow amounting to $2.7M. Recall that for almost a month, Ethereum funds had been suffering an outflow of funds.
As for other altcoin-based products, one should mention XRP-based structures (+$1.1M). According to analysts, the inflow of funds was triggered by growing confidence in Ripple’s success in the fight against SEC over the status of the token.