Crypto Investment Products Snap Eight-Week Outflow Streak

Global crypto investment products have finally broken an eight-week streak of net outflows totaling roughly $8 billion, according to CoinShares' James Butterfill. The recent shift in investor sentiment was triggered by softer-than-expected US inflation data, which revived hopes for a Federal Reserve (Fed) rate cut.

Last week, global crypto funds recorded $287 million in inflows, with this week set to finish positive after initially starting with outflows. Meanwhile, total inflows into US spot Bitcoin exchange-traded funds (ETFs) between Tuesday and Thursday averaged $368 million, according to SoSoValue data.

Despite the improving sentiment, CoinShares cautioned that Bitcoin's upside may remain constrained without a more meaningful shift in monetary policy. Butterfill noted that a sustained move above $80,000 for BTC requires a change in expectations.