# Federal Reserve Hawkish Stance Dampens Market Sentiment, Digital Asset Inflows Slow Significantly

According to CoinShares' weekly report, global digital asset investment products saw inflows slow noticeably to $230 million last week, marking a significant cooldown compared to previous weeks.

While market consensus attributes this to ongoing tensions in Iran pressuring sentiment, analysis suggests it is more likely the market's interpretation of the Federal Reserve's "hawkish pause" stance, causing investor sentiment to turn cautious.

Specifically, the first two days of last week saw strong capital inflows totaling $635 million, but reversed sharply following the Fed meeting with outflows of $405 million. Although outflow momentum had noticeably slowed by Friday, it has yet to significantly reverse the trend.

From a geographic distribution perspective, despite overall market sentiment pressure, all regional exchanges achieved net inflows this week, also demonstrating sustained global investor attention to digital assets.

The U.S. market stood out most prominently with $153 million in single-week net inflows, followed by Germany and Switzerland with $30.2 million and $27.5 million respectively.

From an asset class perspective, Bitcoin remains the preferred choice for capital inflows, attracting $219 million last week; however, short Bitcoin positions also saw concurrent inflows of $6 million, indicating some divergence of opinion among market participants on Bitcoin's future trajectory.

Altcoins such as Solana have continued their strong performance, adding $17 million this week with cumulative inflows reaching $136 million over seven consecutive weeks, further solidifying its status as one of the most popular cryptocurrencies recently.

In stark contrast, Ethereum reversed its three consecutive weeks of inflows, experiencing $27.5 million in outflows this week.

Other projects such as Chainlink and Hyperliquid recorded inflows of $4.6 million and $4.5 million respectively, demonstrating investor attention to diversified digital assets.

In summary, while the Federal Reserve's "hawkish" stance last week dampened market enthusiasm in the short term, exchanges across all global regions achieved net inflows overall, indicating market resilience amid policy uncertainty.

Furthermore, the diversification trend of capital allocation across different assets also suggests the digital asset market is gradually maturing, with investor behavior becoming increasingly rational and balanced.

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