Hot US inflation data sparks $434 million in crypto fund outflows, CoinShares reports
Global digital asset investment products recorded $434 million in outflows this week after stronger-than-expected US inflation and retail sales data fueled hawkish Federal Reserve expectations, according to CoinShares.
Global digital asset investment products have shed $434 million so far this week following stronger-than-expected US macroeconomic prints, according to asset manager CoinShares. Firm research head James Butterfill pointed to stubborn inflation and increasingly hawkish Federal Reserve expectations as the primary drivers pressuring Bitcoin and the wider cryptocurrency market.[1][2][3]
The sell-off followed the release of September inflation figures showing headline US consumer prices rose 0.6% month-on-month and 3.7% year-on-year, surpassing consensus forecasts of 3.6%. Energy led the increase as gasoline prices surged 9.1% over the month, while core inflation climbed 0.3% monthly and 2.6% annually. Concurrently, September retail sales rose 0.8% against expectations of 0.3%, underscoring sustained economic resilience despite monetary tightening.[1][2]
CoinShares noted that higher expected interest rates elevate real yields and increase the opportunity cost of holding non-yielding digital assets. Prediction market Polymarket placed the probability of no rate change at the October Fed meeting at roughly 75% on Oct. 15, compared to about 25% for a 25-basis-point hike. Despite shifting rate expectations and near-term market turbulence, CoinShares described Bitcoin's current market environment as difficult rather than fundamentally bearish.[1][1][2]
Key facts
- Global digital asset investment products experienced $434 million in outflows this week.
- US September CPI rose 3.7% year-on-year and 0.6% month-on-month, exceeding the 3.6% forecast.
- US September retail sales grew 0.8%, topping estimates of roughly 0.3%.
- Excluding gasoline, September retail sales rose 0.2%, slowing from 1.0% in August.
- Polymarket estimated a 75% probability of no Fed rate adjustment at the October meeting as of Oct. 15, versus 25% for a 25-basis-point hike.
- CoinShares stated that Bitcoin's near-term setup is difficult rather than fundamentally bearish.
Sources · 3 sources
- WB
Wu Blockchain@WuBlockchainPost on X ·
CoinShares: Hot CPI Drives $434M Digital Asset Fund Outflows CoinShares said U.S. September CPI rose 3.7% year-on-year, above the 3.6% forecast, while retail sales increased 0.8% versus 0.3% expected. The stronger data pushed rate expectations more hawkish, with global digital asset investment products seeing $434 million in outflows so far this week. CoinShares said Bitcoin’s near-term setup remains difficult rather than fundamentally bearish.
Open source - CB
Crypto Briefing@Crypto_BriefingPost on X ·
📉 NEW: Digital asset investment products have shed $434 million this week as hotter-than-expected CPI and strong retail sales strengthen the case for the Fed to keep rates higher for longer, per CoinShares. https://t.co/YaUJ4HBVT7
Open source - TB
The Block@TheBlockCoPost on X ·
NEW: Global digital asset investment products have seen $434 million in outflows so far this week, according to CoinShares. The firm's research head James Butterfill pointed to hotter U.S. inflation and increasingly hawkish Federal Reserve expectations as pressures on bitcoin bitcoin:native and broader crypto markets.
Open source