Digital asset investment products saw inflows totaling $864 million last week, marking the third successive week of gains. According to CoinShares, this trend reflects a cautiously optimistic sentiment among investors, despite Bitcoin’s continued volatility and mixed market reactions following the recent interest rate cut by the US Federal Reserve.

Cautious Optimism Builds

According to CoinShares’ Digital Asset Fund Flows Weekly Report, Bitcoin led the way in inflows with $522 million, while short Bitcoin products recorded outflows of $1.8 million. This demonstrates an improving confidence in Bitcoin, although it remains a “relative laggard” this year, with year-to-date inflows of $27.7 billion, a decline from $41 billion in 2024.

Ethereum also garnered strong interest, drawing in $338 million, which has contributed to a year-to-date total of $13.3 billion—a 148% increase from last year. Solana reported smaller increases totaling $65 million last week, with year-to-date inflows reaching $3.5 billion, a tenfold rise compared to 2024, while XRP saw inflows of nearly $47 million.

Other notable movements included Aave and Chainlink’s inflows of $5.9 million and $4.1 million, respectively, while Litecoin experienced a modest increase of $0.3 million during the same period.

Meanwhile, Hyperliquid and Sui had outflows of $14.1 million and $0.3 million respectively, with multi-asset products experiencing significant outflows of $104.8 million.

Regionally, the U.S. displayed the highest investor appetite, with inflows of $796 million last week. Germany reported approximately $68.6 million, and Canada attracted $26.8 million. Together, these three markets dominate global activities and account for 98.6% of total year-to-date inflows.

Bitcoin Faces Grim Outlook

Continuing the market’s cautious attitude, a separate analysis warned that Bitcoin might undergo a more severe correction in the upcoming months. Market analyst Mr. Wall Street indicated that weakening macroeconomic conditions, delayed Federal Reserve easing, and deteriorating technical signals suggest a harsh reset. Bitcoin’s price has plummeted from nearly $126,000 to around $90,000, and the analyst anticipates a brief rebound towards $100,000 before further declines.

He highlighted several technical indicators showing signs of a broader bear phase. Without significant liquidity support, Bitcoin could initially drop to the $68,000-$74,000 range, and later towards $54,000-$60,000 by late 2026.