Crypto inflows set another bar last week, reaching their third-highest levels on record, as trade chaos and its effects on the US dollar continue to rock markets.
It marks the reversal of a sustained three-week trend of negative flows, with Bitcoin bucking the trend against altcoins.
Crypto Inflows Reached $3.4 Billion Last Week
The latest CoinShares report indicates that crypto inflows reached $3.4 billion last week, reversing a three-week negative flow trend.
Crypto outflows reached $146 million the week before. Two successive weeks before that recorded crypto outflows of $795 million and $240 million, respectively.
James Butterfill, Head of Research at CoinShares, lauds last week’s positive flows as the largest crypto inflows on record. He ascribes this stark reversal to concerns over the tariff impact on corporate earnings and the associated ripple effect on the US dollar.
“We believe concerns over the tariff impact on corporate earnings and the dramatic weakening of the US dollar are the reasons investors have turned towards digital assets,” wrote Butterfill.
According to Butterfill, investors progressively consider crypto an emerging safe haven beyond Bitcoin. Nevertheless, given its helm as the largest crypto by market cap metrics, Bitcoin investment products were the main beneficiaries, recording $3.188 billion of inflows.
Based on the data, XRP outperformed other altcoins after bucking the trend last week. It aligns with the growing sentiment that the approval of ProShares’ XRP futures ETF (exchange-traded funds) sparks optimism.
As BeInCrypto reported, predictions suggest a spot XRP ETF could follow, potentially attracting $100 billion to Ripple’s payments token.
“A spot XRP ETF could be next, unlocking real demand and sending prices soaring. $100 billion+ could soon flood into XRP,” analyst Armando Pantoja wrote.
Implications of Tariff Impact on Corporate Earnings and the US Dollar
In a recent report, CoinShares explored the US government’s role in the country’s economy and the Federal Reserve’s (Fed) place amidst the chaos.
On one hand, President Donald Trump is putting political pressure on the Federal Reserve (Fed), urging it to cut rates. However, the FOMC (Federal Open Market Committee) rejected further interest rate cuts. The Fed also made significant downward revisions to its 2025 economic projections.
While the Fed’s actions suggest weaker growth and persistent inflation, Trump’s moves indicate potential political battles over monetary policy.
“Is the US government taking over the economy? Is the Fed losing control?” CoinShares posed.
The US dollar is bearing the brunt of this chaos. For example, BeInCrypto recently reported on the plummeting DXY (dollar index) amid Trump’s push to oust Fed chair Jerome Powell.
With this, analysts highlight Bitcoin’s shift from a risk asset to a hedge against monetary mismanagement. US economic turbulence, including Q1 2025 GDP and new tariffs, drives this turnout, causing Bitcoin to outperform the Nasdaq-100 by 4.5% since the tariff announcement.
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