15-Week Inflow Streak Snapped Amid Policy Uncertainty

Digital asset investment products witnessed 【$223 million】 in net outflows last week, abruptly ending a 15-week inflow streak that had marked 2025's bullish crypto market. The reversal followed hawkish signals from the Federal Reserve's July policy meeting, where Chair Jerome Powell's remarks cooled expectations for near-term rate cuts.

Bitcoin Bears the Brunt of Profit-Taking

BTC-focused funds accounted for 【$404 million】 of the withdrawals, coinciding with Bitcoin's historically weak August performance. Data from CoinGlass reveals the cryptocurrency has posted median returns of 【-7.49%】 during this month over past cycles. "This appears to be healthy profit-taking after 【$12.2 billion】 flooded into crypto ETPs last month," noted CoinShares' research team.

Ethereum Defies Market Gloom with 15th Consecutive Inflow

While most digital assets suffered, Ether investment products attracted 【$133 million】 in fresh capital—their fifteenth straight week of inflows. Analysts attribute this resilience to growing anticipation around potential spot ETH ETF approvals and the network's upcoming protocol upgrades.

Altcoins Show Selective Strength

XRP, Solana and Sui-focused funds bucked the broader trend with inflows of 【$31.2 million】, 【$8.8 million】 and 【$5.8 million】 respectively. The divergence suggests investors are rotating into specific altcoins rather than abandoning crypto markets entirely.

Macroeconomic Headwinds Reshape Crypto Landscape

The Fed's policy stance pushed September rate cut probabilities down to 【40%】 from 63% pre-meeting. Meanwhile, President Trump's new tariff policies introduced additional market volatility. ——"We're seeing recalibration rather than breakdown,"—— observed Nexo's Stella Zlatareva, noting the crypto sector's 【$3.7 trillion】 market cap demonstrates underlying institutional confidence.

What Comes Next for Digital Asset Investors?

Matrixport analysts suggest Bitcoin could regain momentum after Labor Day when U.S. lawmakers return from recess. The firm's research note highlights Bitcoin's historical performance during periods of fiscal uncertainty, calling it "front and center in the hard assets narrative." Market participants now watch whether August's traditional weakness will give way to renewed institutional demand in Q4.