Crypto Craze: $3.3 Billion Inflows as Moody’s Sends Markets into a Tailspin! 💸😱

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Well, well, well! Crypto inflows have decided to throw a party, breaking records like it’s 1999! 🎉 Last week, digital asset investment products attracted a jaw-dropping $3.3 billion, pushing the year-to-date (YTD) totals to a staggering $10.8 billion. Who knew digital coins could be so popular?

Thanks to this crypto bonanza, total assets under management (AuM) have skyrocketed to a new all-time high of $187.5 billion. Talk about a glow-up!

Crypto Inflows: Almost $3.3 Billion Last Week! 💰

According to the latest CoinShares report, last week’s crypto inflows hit $3.29 billion, with the US hogging the limelight at $3.2 billion. Clearly, the domestic economic anxiety is making everyone a little too eager to jump on the crypto bandwagon.

Other notable inflows came from Germany ($41.5 million), Hong Kong ($33.3 million), and Australia ($10.9 million). Meanwhile, Switzerland decided to take a little break with outflows of $16.6 million. Guess they were too busy enjoying their chocolate and cheese to invest! 🍫🧀

CoinShares’ researcher James Butterfill points out that Bitcoin is the star of the show, raking in $2.9 billion in inflows, which is over 25% of all digital asset inflows for 2024. Move over, everyone else!

Meanwhile, Ethereum is also getting in on the action with $326 million in inflows. That’s the highest in 15 weeks! It seems like everyone is feeling good about the network’s Pectra upgrade. Who knew upgrades could be so thrilling? 🚀

But wait, there’s more! Short-Bitcoin products also attracted $12.7 million, the highest weekly inflow since December 2024. James Butterfill suggests that investors might be preparing for some wild market swings. Buckle up, folks!

Of course, this surge comes amidst growing anxiety over the US economy. Thanks to Moody’s recent downgrade warning and skyrocketing Treasury yields, investors are feeling a bit jittery. 😬

“We believe that growing concerns over the US economy, driven by Moody’s and the resulting spike in treasury yields, have prompted investors to seek diversification through digital assets,” read an excerpt in the report.

The weekly total is a sharp jump from the previous two weeks. BeInCrypto reported crypto inflows of $785 million and $882 million, respectively. Looks like everyone is pivoting to crypto faster than you can say “blockchain!”

Moody’s has kept a “negative” outlook on the US credit rating since late 2023. Last week, it reignited fears after cautioning about the US government’s deteriorating fiscal profile. Yikes!

“Moody’s assessment is right. No other major developed economy is under pressure to grow its GDP by nearly 5% simply to service its debt. None. This is a central pillar of the bearish case for the US dollar,” commented macro investor Otavio Costa.

The warning raised doubts about the sustainability of US debt, especially with Treasury yields hovering near multi-decade highs. It’s like a bad reality show that just won’t end!

In this chaotic landscape, analysts are increasingly framing digital assets like Bitcoin as a hedge against sovereign credit risk and monetary tightening. Because why not add a little crypto to your portfolio, right?

The overarching narrative is that macroeconomic instability is reviving crypto’s appeal as a portfolio diversifier. Who knew chaos could be so profitable?

This explains total digital asset inflows over the past six weeks, which reached $10.5 billion. It’s an unprecedented streak that mirrors growing institutional participation. Everyone wants a piece of the crypto pie! 🥧

With US fiscal and monetary pressures unlikely to ease anytime soon, crypto may continue to benefit from a broader reallocation of capital away from traditional risk assets and into decentralized alternatives. Cheers to that!

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2025-05-26 15:11