In a recent development, cryptocurrency investment funds recorded the largest outflows since March amid the FOMC meeting last week. According to the CoinShares report, released on June 17, digital asset investment products saw outflows totaling $600 million last week. The amount was the largest outflow since March 22, 2024.

The report noted the market action was due to a “more aggressive than expected” FOMC meeting, prompting investors to reduce their exposure to fixed supply assets.”

According to the data, the outflows recorded last week and the recent price sell-off had caused total assets under management (AuM)m to fall from more than $100 billion to $94 billion during the week.

“Trading volumes remain lower at $11 billion for the week, compared to this year’s weekly average of $22 billion, but well above last year’s $2 billion weekly. Digital asset ETPs hold steady 31% of global trading volumes on trusted exchanges,” CoinShares head of research James Butterfill said in the report.

Fed keeps rate stable and signals only one cut in 2024

In a crucial decision for the financial market, the Federal Reserve (Fed) chose to maintain interest rates between 5.25% and 5.50%, a level that had not been observed for 23 years. This resolution came to light at the end of the monetary policy meeting that lasted two days, marking a moment of stability since July 2023.

What surprised analysts was the revision in the number of rate cuts expected for the current year. Initially, there were expectations of three reductions, but the current scenario has adjusted to just one cut. That adjustment was a close call, revealing a delicate balance in the projections: eight Fed officials projected two cuts, while seven saw the possibility of just one. Interestingly, four authorities do not foresee rate reductions for this year.

Furthermore, in a recent development that has captured the attention of economists and investors, the latest report from the US Bureau of Labor Statistics indicated a notable slowdown in inflation during the month of May. This report, essential for understanding economic trends, revealed that the Consumer Price Index (CPI) remained stable compared to the previous month, with an annual increase of 3.3% – a slower pace than the increase in 0.3% recorded in April and growth of 3.4% year-on-year.


The views and opinions expressed by the author, or anyone mentioned in this article, are for informational purposes only and do not constitute financial, investment or other advice. Investing or trading cryptocurrencies carries a risk of financial loss.


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