The crypto market slowed down last week. And while many blamed global tensions in the Middle East, the real reason behind this may have been the US Federal Reserve.
According to a report from CoinShares, digital asset investment products saw an inflow of $230 million. However, this figure was much lower than the figure of the previous weeks.
Looking closer, most of the money came in before the Fed meeting, with an additional $635 million in just two days. After the Fed announced a more cautious approach, about $405 million quickly left the market.
THe suggested that investors may react more to interest rate expectations than to global conflicts, adjusting their positions based on future monetary policy.
While the total inflows of $230 million indicated a recovering market, the data showed that investor sentiment is still mixed.
Analysis of different coins and their performance over the past week
Bitcoin [BTC] is still leading the market, generating weekly inflows of approximately $219 million. However, the overall picture shows that investors are uncertain about what comes next.
Interestingly, short Bitcoin products also saw $6 million inflows, meaning some investors are betting on a price drop while others are buying the dip.
At the same time Chainlink [LINK] and hyperfluid [HYPE] have attracted attention and have raised a combined total of $9.1 million.
Especially Solana [SOL] has been strong, raising $17 million and extending inflows to seven weeks. Ethereum [ETH]however, there was an outflow of $27.5 million.
Overall, this indicated that investors are cautious following the recent signals from the FOMC.
Price promotion and more
These numbers come from the fact that most cryptocurrencies have fallen on the charts in the past week. ETH And HYPE were the hardest hit, both falling by around 6.69%.
LINK also fell by about 5.21% over the past week. BTC carried out slightly better, with a smaller decline of 3.97%. Meanwhile, SOL showed the most strength, falling only 2.03% over the same period.
But even though prices fell, money still flowed into the market.
In fact, Santiment’s 7-day active addresses suggested that Chainlink was leading in user activity. While Ethereum and Bitcoin showed more moderate and stable usage patterns.
Additionally, the social volume data suggested that Solana has maintained a stable and strong presence in discussions over time.
On the contrary, while Hyperliquid has seen short bursts of attention, it has struggled to maintain consistent momentum.
Is altcoin season just around the corner?
All this has also led analysts to think that altcoin season is imminent.
For its part, however, the Altcoin Season Index, with a press time value of 47, must reach 75 to confirm a full altcoin season.
Therefore, if inflows from regions like the US and Europe continue, this phase could be the final build-up before a broader altcoin rally begins.
Final summary
- Institutional behavior indicated a ‘buy the dip’ mentality, rather than panic selling.
- The gap between price action and capital inflows hinted at hidden strength beneath short-term market weakness.