XRP Flips Bitcoin and Ethereum in Weekly Inflows

The latest weekly data from CoinShares reveal a staggering $415 million outflow in digital asset investment fund following 19 consecutive weeks of capital inflow.

CoinShares’ latest weekly data reveals a surprising shift in market sentiment as digital assets experience a collective outflow of $415 million, snapping a 19-week streak of capital inflows.

The latest report highlights a significant reversal in market sentiment, with digital assets suffering an outflow of $415 million, snapping a 19-week streak of consecutive inflows.

While Bitcoin suffered the largest outflows, Solana bucked the trend, attracting $8.9 million in inflows, making it the top asset for inflows. XRP trailed closely behind with $8.5 million in inflows. Sui, Cardano, and Litecoin also saw positive momentum, securing inflows of $6 million, $1.9 million, and $1.2 million, respectively.

CoinShares data shows that digital asset investment products experienced outflows for the first time in nearly five months, as evidenced by a staggering $415 million leaving the funds. This marks a stark contrast to the 19 consecutive weeks of capital inflows that preceded it.

The report further reveals that the majority of outflows occurred in the United States, totaling $464 million. This comes despite a positive development where the SEC recognized altcoin ETFs, including those tracking assets like XRP.

Among digital asset providers, iShares ETFs saw the largest inflow of $130 million. Meanwhile, Fidelity ETFs bore the brunt of outflows, losing $282 million.

The report also highlights the impact of the Federal Reserve's hawkish stance and the CPI report's higher-than-expected inflation rate on market sentiment.

During his semi-annual monetary report to the U.S. Congress on February 12, Fed Reserve Chair Jerome Powell expressed his hawkish approach to interest rate cuts. Positing that the Fed sees no urgency to alter its policy stance, Powell added,

“Our policy stance is now less restrictive than it had been, and the economy remains strong. We do not need to be in a hurry to adjust our policy stance.”

Meanwhile, the US CPI report for January, released on the same date, unveiled a hotter-than-anticipated inflation rate. The inflation has risen to 3%, up from 2.9% in the previous month. The rate jumped to 0.5% in January, surpassing the 0.4% increase seen in December.

The Fed's cautious approach to cutting interest rates has sparked concerns about a potential bear market, while the higher inflation data provides the central bank leeway to maintain its hawkish stance. As a result, digital asset investment products have experienced significant outflows.

Despite XRP's notable achievement, the token's price remains in a negative sphere. Currently trading at $2.71, XRP has experienced a marginal decline of 0.67% over the last 24 hours and a notable dip of 15% over the last one month. However, the token exhibited an increase of 11% in a week.