First Negative Flows in 2025 Amid Inflation Fears | Airdrop Alert Pro

Last week, cryptocurrency outflows totaled $415 million, marking a sharp reversal of the winning streak with Net Positives since the beginning of the year.

This downturn is mainly attributed to recent Hawkish remarks by Fed Chairman Jerome Powell and higher than expected inflation data.

Bitcoin surrenders, crypto outflows reach $415 million

The latest Coinshares report shows that cryptocurrency outflows last week was $430 million. Bitcoin (BTC) is known for its sensitivity to interest rate expectations and he has taken the brunt of retreating, indicating greater risks in the cryptocurrency market.

The U.S. Federal Reserve said inflation rose to 3% year-on-year growth in January, effectively exceeding expectations. Similarly, the core inflation rate reached 3.3%, which attracted market attention.

As Beincrypto reported, Crypto Investor Response Negative Responseoverall market cap fell 5%, and Bitcoin immediately fell below $95,000. But the main concern is the remarks of Fed Chairman Jerome Powell, who hinted that he wouldn’t hurry up Reduce interest rates.

During his testimony to Congress, Powell stressed the need for long-term interest rates to combat inflation. The fake investor hopes to lower interest rates early, causing cryptocurrency markets to rattle, as higher interest rates are often heavy on speculative assets.

“Some of the reverse wealth effects may be the biggest factor in reducing inflation, which means highly speculative cryptocurrencies are at the forefront…it may foolishly expect inflation to fall until risky assets do,” Write Analyst Mike McGlone.

Don’t forget that the market has already US President Donald Trump’s tariffs In Canada, Mexico and China, Powell attaches great importance to risk-standing assets. After the release of CPI, Bitcoin’s Fear and Greed Index followed a wide range of measures of market sentiment and entered the “fear” field.

It is worth noting that it has resorted to neutral territory, reflecting investor uncertainty ahead of the minutes of this week’s FOMC meeting.

Against this backdrop, most of the cryptocurrency flowed out last week, totaling $464 million, originating in the United States. According to Coinshares researcher James Butterfill, U.S. investors have responded strongly to domestic economic signals.

“We believe that these outflows were triggered by Congress meetings with Fed Chairman Jerome Powell, who said he showed a more hawkish monetary policy stance, coupled with U.S. inflation data outpacing beyond that Expected…most outflows from the United States…most other countries are largely unaffected. News,” excerpts from the report read.

The first net encryption outflow in 2025

Meanwhile, the $415 million crypto outflow marks the first net withdrawal of digital asset investment products in 2025, destroying the stripes of positive traffic. A week ago Crypto inflows reached $1.3 billionhighlighting the rapid emotional shift in response to macroeconomic conditions.

Prior to this callback, the cryptocurrency market also saw a series of strong inflows, which expanded positive traffic The first week of the year. Specifically, there was $585 million inflow in the first week of January, indicating early investor confidence, and the inflow soared to $2.2 billion Amid optimism at President Trump’s inauguration, later this month. However, in early February, inflows slowed down to $527 million With China’s deepening liquidity liquidity.

These figures illustrate how investor sentiment responds to the shift in speed at economic data and policy signals.

It is also worth noting that the impact of inflation data is Bitcoin ETF (Exchange Trade Fund) Outflow. As Beincrypto reported, Bitcoin ETF outflow Increased from $56.76 million to $243 million With inflation and Powell’s stance on interest rates, investor confidence has made investors confident.

However, Ethereum ETFs show greater resilience, avoiding similar capital flights. The latest Coinshares report also shows that the impact on Bitcoin is more obvious than Ethereum. This suggests that investors can reevaluate their digital asset allocations given the transfer of macroeconomic conditions.

This is consistent with the recent JPMorgan survey, which determined that 51% of businessmen view tariffs and inflation as The most influential market factors in 2025.

In addition, 41% of respondents were volatilityespecially in response to unpredictable political developments.

Based on this view, FOMC’s Minutes (Federal Open Market Committee) meetings may later be related to crypto inflows or outflows.