Cryptocurrency Market Pullback After FOMC Meeting Cuts Weekly Inflows

Cryptocurrency investment products last week ended with record net outflows, interrupting a 15-week streak of inflows. The market pullback coincided with hawkish remarks from the Federal Open Market Committee (FOMC) meeting.

According to CoinShares’ latest report, global crypto exchange-traded products (ETPs) experienced $223 million in net outflows last week.

While the week began with strong inflows exceeding $883 million, this momentum reversed during the latter half, the report stated. The FOMC’s restrictive stance and positive economic data from the U.S. are cited as key factors weakening investor sentiment.

“The record net inflows over the last 30 days represent 50% of the year’s inflows so far, potentially explaining minor profit-taking.”

US Federal Reserve Chair Jerome Powell’s statements significantly reduced the expected chance of a September interest rate cut, lowering projections from 63% to a mere 40%.

The downturn occurs as Bitcoin enters August, historically one of its weakest months. CoinGlass data indicates Bitcoin’s median return for the month currently stands at -7.49%, anticipating further declines.

Bitcoin-focused ETPs led the outflows with $404 million in net redemptions. Matrixport analysts noted potential catalysts post-September’s congressional recess, suggesting hard assets like Bitcoin could benefit from fiscal uncertainty.

Ether Maintains Inflow Momentum Despite Broader Decline

While most cryptocurrency funds saw outflows, Ether (ETH) ETPs notched their 15th consecutive week of inflows, attracting $133 million. This persistence is attributed to sustained positive sentiment around the asset. Year-to-date inflows reached nearly $5.3 billion for ETH ETPs.

Other promising assets saw positive inflows: Ripple (XRP) ETPs gained $31.2 million, Solana (SOL) funds saw $8.8 million, and Sui (SUI) products attracted $5.8 million over the past week.

CoinShares reported continued institutional interest despite the broader market pullback:

“Robust positive sentiment for the asset” is driving Ether fund inflows.

Market Reaction to Trade Tariffs

Meanwhile, President Donald Trump’s Aug. 7 executive order imposing 15%–41% tariffs on goods from 68 countries added to market jitters. Stella Zlatareva of Nexo observed a recalculation rather than a breakdown in digital assets.

“The digital asset market remains firmly above $3.7 trillion, anchored by institutional conviction,” Zlatareva explained, suggesting altcoin stability may gradually return as trade tensions unfold.