The crypto market recorded an outflow of $726 million amid uncertainty over a rate cut by the Federal Reserve (Fed) according to a CoinShares report.
Repeated weekly outflows in crypto investments have equaled the largest record since March 2024.
Continued selling pressure comes in line with negative sentiment driven by stronger-than-expected macroeconomic data in the United States compared to the previous week.
This also increases the possibility of the Fed cutting interest rates by 25 basis points.
Additionally, daily outflows then slowed amid weak US jobs data and fueled expectations that the Fed would opt for a possible 50 basis point rate cut.
Markets are now awaiting Wednesday's Consumer Price Index (CPI) inflation report and expect a 50 basis point cut likely if inflation is below expectations.
Further rate cuts will bode well for risky assets like crypto to give holders the chance to enjoy cheaper borrowing costs.
