Cryptos See Strong Exits Amid August US Unemployment Rate Drop

• Digital asset products saw the largest outflows in March, totaling $725.7 million.
• US Bitcoin ETFs saw the biggest outflows after the release of weaker-than-expected macroeconomic data.
• Ethereum ETFs saw another $98 million in outflows, while Solana ETFs saw minor inflows.

CoinShares’ Weekly Digital Assets Report revealed on Monday that crypto ETFs saw their biggest outflows since March, totaling $725.7 million. It is suggested that this resulted from last week’s lower-than-expected non-farm payrolls (NFP) report.

Crypto ETF investors reduced holdings on the lower-than-expected NFP fund

Crypto investment products saw a second week of outflows last week, with net outflows of $725.7 million, according to CoinShares data. The report indicates that the huge outflows may have resulted from too much anticipation of a 25 basis point interest rate cut by the US Federal Reserve in September.

The US and Canada led to net outflows of $721 million and $28 million, respectively. On the other hand, Europe saw inflows, with Germany and Switzerland posting positive inflows of $16.3 million and $3.2 million, respectively.

Among digital asset classes, Bitcoin ETFs were the hardest hit, with outflows totaling $643 million. BTC also saw a significant drop in its price, falling below $54,000 before seeing a slight correction on Monday. The drop follows August’s NFP report, which found the jobless rate at 4.2% but less-than-expected job growth.

Weekly flows of crypto assets

Investors have now turned their attention to the US Consumer Price Index (CPI) data report due on Wednesday. CoinShares notes that a rate cut of 50 basis points will be possible if the CPI data is below expectations.

Tuesday’s US presidential debate may also prove decisive, as Donald Trump reiterated his support for Bitcoin and the entire digital asset market.

Short-bitcoin ETFs, on the other hand, saw inflows of $3.9 million after Bitcoin’s massive outflows. Among altcoins, Solana products saw inflows totaling $6.2 million, while Ethereum witnessed additional outflows of $98.1 million.