CoinShares: Digital Asset Investment Products See $434 Million Weekly Outflows

October 16, according to CoinShares market report, U.S. September CPI rose 0.6% month-over-month and 3.7% year-over-year, above the market expectation of 3.6%. Gasoline prices rose 9.1% for the month, accounting for about half of the overall increase. Core CPI rose 0.3% month-over-month and 2.6% year-over-year. During the same period, U.S. September retail sales grew 0.8% month-over-month, above the expected ~0.3%, with August data revised up to 1.3%. However, retail sales excluding gasoline grew only 0.2%, below August's 1.0%. The report noted that inflation remains elevated and economic demand stays resilient, prompting a hawkish repricing of Fed policy in the market, with Bitcoin and the broader digital asset market moving lower.

Data shows market sentiment has notably weakened since the CPI release, with global digital asset investment products seeing $434 million in outflows so far this week. Regarding rate expectations, as of October 15, Polymarket data indicated a ~75% probability that the Fed holds rates steady at its October meeting, with a ~25% probability of a 25 basis point hike. Following the CPI release, futures markets shifted notably hawkish, with expectations of another rate hike this year rising sharply.

[TechFlow]