Crypto Inflows Surge to $921M as Bitcoin Tops $931M on Fed Rate Hopes
Crypto inflows surged to $921 million last week, reversing the prior week’s $513 million outflow. This jump followed softer US CPI data showing core inflation at 0.2%, fueling hopes for Federal Reserve rate cuts. Bitcoin inflows hit $931 million—a new weekly record—pushing year-to-date flows to $30.2 billion and cumulative inflows since the Fed easing cycle began to $9.4 billion. Ethereum saw $169 million in outflows amid broader market caution. Regionally, the US led with $843 million in inflows, Germany added $502 million, while Switzerland recorded $359 million in outflows due to asset reallocations. Altcoins held mixed momentum: Solana attracted $29.4 million, and XRP drew $84.3 million. Global trading volumes rose to $39 billion, surpassing the $28 billion average and underlining improved liquidity. Analysts say the surge in crypto inflows reflects renewed investor optimism and priced-in Fed rate cuts. Traders should watch upcoming FOMC decisions and Fed Chair Jerome Powell’s remarks for potential market-moving surprises.
Bullish
The strong crypto inflows and record Bitcoin inflows signal bullish momentum in the short term, likely driving price gains as investor demand increases. Improved liquidity and altcoin inflows support a broad market rally. In the long term, if Fed rate cuts materialize, easing financial conditions could sustain this positive trend and attract more institutional capital. However, traders should remain cautious of potential volatility around FOMC meetings and Powell’s statements, which could temper the bullish outlook if rate cut expectations shift.