In a noteworthy development, Coinshares has reported a substantial $543 million inflow into Bitcoin (BTC) following dovish remarks from Federal Reserve Chair Jerome Powell. This surge, part of a broader $533 million influx into digital asset investment products last week, underscores a clear link between Bitcoin’s market performance and the prevailing sentiment regarding U.S. interest rate adjustments.

James Butterfill, the chief researcher at Coinshares, observed that the bulk of these inflows materialized on Friday, coinciding with Powell’s comments that hinted at potential rate cuts. This timing suggests a pronounced reaction in Bitcoin’s market dynamics to shifts in monetary policy expectations.

Despite a reduction in trading volumes compared to previous weeks, the overall trading activity remained robust, totaling $9 billion. The United States emerged as the predominant source of this capital influx, contributing $498 million. Meanwhile, Hong Kong and Switzerland also demonstrated positive engagement, with inflows of $16 million and $14 million, respectively.

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In contrast, Ethereum (ETH) experienced a net outflow of $36 million. Butterfill’s report also highlighted that newly launched Ethereum exchange-traded funds (ETFs) have garnered $3.1 billion in inflows since their inception. However, this positive reception is somewhat tempered by $2.5 billion in outflows from the Grayscale Ethereum Trust (ETHE), reflecting a divergence in investor sentiment between Bitcoin and Ethereum under the current market conditions.

This contrasting behavior between Bitcoin and Ethereum underscores a nuanced landscape where macroeconomic signals, such as those from Powell, have a distinct impact on investor flows and market perceptions.