Bitcoin fund flows show investors trading Fed rate path, not exiting market: CoinShares
Crypto fund flows are increasingly driven by expectations for US interest-rate policy. CoinShares says Fed policy is still capping Bitcoin near $80,000, even as demand for digital assets remains strong. After Jackson Hole comments that inflation progress was slow, about $100 million left crypto investment products as markets raised odds of a September rate hike. Flows then reversed to $1 billion by Sept. 4 after a Fed governor signaled possible rate stability if inflation improves. The main message is that investors are not abandoning crypto; they are rotating based on the expected rate path. Fed Funds futures currently imply roughly a 60% chance of a hike at the next FOMC meeting. Broader liquidity factors also support the market, including Treasury buybacks and shifting risk sentiment, which helped Bitcoin rebound from the low $60,000s to above $80,000.
