Bitcoin Sees Possible Profit-Taking Amid Fed Hawkishness While Ether Maintains Positive Fund Inflows

Key Points

1. Global cryptocurrency ETPs experienced $223 million in outflows last week, reversing earlier inflows of $883 million, driven by hawkish comments from the US Federal Reserve.

2. Bitcoin (BTC) ETPs accounted for the majority of outflows with $404 million withdrawn, as August is historically one of Bitcoin's weakest months with median returns of -7.49%.

3. Ether (ETH) ETPs defied the market downturn, marking their 15th consecutive week of net inflows with $133 million, supported by network upgrades and the growing DeFi ecosystem.

4. Other altcoins like XRP, Solana (SOL), and Sui (SUI) also saw inflows of $31.2 million, $8.8 million, and $5.8 million respectively, indicating continued investor interest in select altcoins.

5. Industry experts suggest that structural flows, institutional conviction, and the prospect of clearer US regulation underpin market stability, with altcoin markets expected to regain steadiness gradually.