According to the latest report from CoinShares, global crypto investment products recorded outflows of $305 million last week.
This was due to widespread negative sentiment across a number of providers and regions, as stated by CoinShares head of research James Butterfill.
Sentiment was boosted by better-than-expected US economic data, which led to a decrease in the likelihood of a 50 basis point interest rate cut.
Butterfill also added that as the Fed moves closer to a pivot, the asset class is expected to become more sensitive to interest rate expectations.
The main focus of the negative sentiment was Bitcoin, as investment products based on the cryptocurrency experienced net outflows of $319 million last week.
In addition, Bitcoin short funds received net inflows for the second week in a row, reaching $4.4 million, the highest since March.