Crypto Funds See $932M in Weekly Inflows

There was a noteworthy increase in investments in crypto-based products during the past week, marking two consecutive weeks of positive inflows since the recent market downturn.

According to data from CoinShares, these investment products received a total of $932 million from May 13 to 17, driven by an immediate reaction to the US Consumer Price Index (CPI) report, which showed a moderate decline in inflationary pressures.

Despite the higher inflows, weekly volumes remained relatively low at $10.5 billion, significantly lower than the $40 billion observed in March. Interestingly, the majority of the inflows were in direct response to the CPI report, with the last three trading days of the week accounting for 89% of the total.

This highlights the view that Bitcoin prices have once again become closely tied to interest rate expectations.

The CPI report released on May 15 showed a 0.3% increase in inflation for April, following a 0.4% rise in March. Year over year, the CPI grew by 3.4% due to significant increases in the energy and food sectors.