U.Today – (SOL)-based investment products defied all odds with significant inflows last week. The most surprising part is that (BTC)-based products struggled greatly during this time. As CoinShares’ research blog reports, digital asset investment products, or ETFs, saw outflows of $726 million last week.
It has matched the figures seen in March, the largest outflows recorded this year. According to CoinShares, stronger than expected macroeconomic data is likely to have driven this bearish sentiment in the market. The market is abuzz with speculation that the US Federal Reserve may announce a 25 basis point interest rate cut in the near future.
In addition, some are expecting a possible 50 basis point interest rate cut following the release of employment data last week. The Consumer Price Index (CPI) inflation report is expected to be released tomorrow, and financial markets are watching it closely. If inflation figures decline, the 50 basis point interest rate cut is likely.
These macroeconomic debates have fueled fear and uncertainty in the markets, including the cryptocurrency market. This past weekend saw significant losses in the prices of major coins such as BTC, ETH, SOL, and others. The price of Bitcoin even fell below the crucial $52,000 mark before recovering to the $55,000 price level.
Solana eclipsed Bitcoin
Institutional investors are staying on the sidelines at the moment as bearish sentiment prevails. Last week, Bitcoin investment products saw outflows of around $643 million. Meanwhile, the products also faced pressure as they saw outflows of around $98 million. The overall situation looks bleak as investors lack confidence in the market.
However, Solana has managed to withstand this pressure and gain the interest of investors. While others were suffering losses, Solana products saw inflows of around $6.2 million. This is the largest inflow recorded for any asset over the past week. This is a positive development for SOL price as rising institutional sentiment can change market sentiment.
This article was originally published on U.Today
