Bitcoin (BTC) values are in a free fall and this can be largely blamed upon increasingly hawkish monetary policy which is in the offing due to surging inflation. More than $100 million has exited from the US crypto funds. Increasing inflation also has led to bearish sentiments affecting the stock market.
The U.S. Federal Reserve is sure to bring forth aggressive monetary measures and in anticipation institutional investors have withdrawn $101.5 million worth of digital asset products last week.
Bitcoin Values In A Free Fall
The US Inflation rates have reached levels not seen since 1981. Therefore the market is bracing for some tough action to control the surging 8.6% inflation. Traders are expecting The Federal Reserve to bring forth three more 0.5% rate hikes by the end of November.
As per the data obtained from CoinShares’ weekly Digital Asset Fund Flows report, investors in America have pumped out $98 million, while Europe accounted for just $2 million.
Bitcoin And Ethereum Contibuted To Bulk Of Crypto Funds Flight
The Number One and Number two crypto coins- Bitcoin (BTC) and Ethereum (ETH) were the most affected by the flight of capital. Funds worth $56.8 million was withdrawn from Bitcoin (BTC) coffers while Ethereum (ETH) lost $40.7 million. These two account for the chunk of the flight of capital.
Interestingly Bitcoin despite being pushed in the bearish zone the year-to-date (YTD) inflows for BTC investment products still stand at $450.8 million. In contrast the number two crypto asset Ethereum (ETH) saw huge YTD outflows of $386.5 million. It is an indication that institutional investors has not lost faith in digital gold.
The assets under management (AUM) for ETH funds has tanked from its glory of US$23billion in November 2021 to US$8.7 billion as of last week.
Data from CoinGecko reveals that Bitcoin values have dropped 4.7% in between June 6 and June 10 while ETH also dropped by 5.9%. However, post June 11 the values of both the crypto coin have been in a free fall. BTC crashed by 25.7% while ETH tanked 33.2%