BEARISH (0.70)Decrypt

Divergent Regional Flows Signal Market Fragmentation

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Digital asset investment products experienced $288 million in net outflows last week, reflecting continued investor caution amid macroeconomic uncertainty and regulatory ambiguity. This marks the third consecutive week of outflows, suggesting a persistent risk-off sentiment among institutional participants as traditional markets face headwinds from inflation concerns and tightening monetary policies.

Notably, the outflow pattern reveals a stark regional divergence: U.S.-based products drove the selling pressure while European counterparts demonstrated opportunistic buying behavior. This geographical split may indicate differing regulatory outlooks, with European investors potentially viewing recent price corrections as entry points ahead of clearer frameworks like MiCA, whereas U.S. investors remain hesitant amid ongoing regulatory uncertainty from the SEC and other agencies.

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