Last week, a landmark event for the global economy was the first increase in the discount rate of the Federal Reserve System since 2018. The US regulator thus hopes to ease inflation, which is growing rapidly amid tensions.
A report from CoinShares says that institutional investors withdrew about $47 million from crypto funds from March 14 to March 18. The outflow of funds from products focused on digital currencies is observed for the second week in a row, the researchers emphasized.
A week earlier, institutional investors withdrew approximately $110 million from crypto funds. Before that, for seven consecutive weeks, on the contrary, the largest investors invested in such instruments, the report says.
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Bitcoin (BTC) and Ether (ETH)-focused funds have seen $33 million and $17 million in outflows, respectively.
At the same time, most other altcoin funds recorded a small influx of capital last week.
CoinShares analysts note: "We believe the negative sentiment in North America is due to increased regulatory uncertainty and geopolitical concerns."