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Solana (SOL)-based investment products defied all the odds with significant inflows last week. The most surprising part is that Bitcoin (BTC)-based products struggled big time during this time. As the CoinShares Research Blog reports, digital asset investment products, or ETFs, saw outflows of $726 million last week.
It has matched the numbers seen in March, the largest recorded outflows this year. Stronger than expected macroeconomic data has likely pushed this bearish sentiment on the market, according to CoinShares. The market is buzzing with speculation that the U.S Federal Reserve may announce a 25-basis-point interest rate cut in the near future.
In addition, some are expecting a potential 50-basis-point rate cut after the unveiling of employment data last week. The Consumer Price Index (CP|) inflation report is expected to be released tomorrow, and the financial markets are keeping an eye on it. If the inflation numbers see a decline, the 50-basis-point rate cut is likely to happen.
These macroeconomic discussions have fueled fear and uncertainty on the markets, including the crypto market. The last weekend saw major losses in the prices of top currencies like BTC, ETH, XRP, SOL and others. The Bitcoin price even went below the crucial $52,000 mark before rebounding to the $55,000 price level.
Bitcoin outshined by Solana
Institutional investors are currently sitting on the sidelines, as bearish sentiment is prevailing. Bitcoin investment products witnessed $643 million in outflows last week. Meanwhile, Ethereum 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 deal with this pressure and gain investor interest. While others were bleeding, Solana products witnessed inflows of about $6.2 million. These are the largest of inflows seen for any asset during the past week. It is a positive development for the SOL price as the rise in institutional sentiment can change market sentiment.
Alex Dovbnya
Dan Burgin
Vladislav Sopov