Bitcoin Investment Products Suffer Major Outflows Amid Hawkish Fed Stance

The cryptocurrency market experienced a significant downturn last week, with Bitcoin investment products seeing over $600 million in outflows, according to asset manager CoinShares. This was driven by a hawkish stance from the Federal Open Market Committee (FOMC) on interest rate cuts, which dampened investor sentiment. The FOMC's decision to hold rates steady and its forecast of only one 25 basis point rate cut this year weighed heavily on Bitcoin, sending its price down to its lowest point in four weeks. This also negatively impacted Grayscale's GBTC, which saw a substantial $273 million in outflows. While some altcoins like ETH, LIDO, and XRP experienced minor inflows, the overall market trend was characterized by outflows, reflecting investor uncertainty and the impact of the Fed's recent actions.