CoinShares: Digital asset investment products saw net outflows of $434 million this week.

BlockBeats news, October 17 - CoinShares released a market report indicating that stronger-than-expected US inflation and consumption data have shifted market expectations toward a hawkish Federal Reserve monetary policy, causing Bitcoin and the broader digital asset market to weaken. Global digital asset investment products saw net outflows of $434 million this week, signaling a clear deterioration in investor sentiment following the release of US CPI data.

Data shows that US September CPI rose 0.6% month-over-month and 3.7% year-over-year, above the market expectation of 3.6%; core CPI rose 2.6% year-over-year. Meanwhile, retail sales grew 0.8% month-over-month, far exceeding the market expectation of about 0.3%, but retail sales excluding gasoline rose only 0.2%, reflecting that part of the consumption growth came from rising energy prices.

The report stated that inflation remains elevated and economic demand remains resilient, making it difficult for the Federal Reserve to loosen restrictive policy. Polymarket data shows that as of October 15, the market estimated about a 75% probability that the Federal Reserve would keep rates unchanged in October and about a 25% probability of a 25 basis point rate hike; however, expectations for another rate hike before the end of the year have clearly risen.

CoinShares believes that Bitcoin will still face short-term pressure from fluctuations in interest rate expectations, but this does not necessarily mean its fundamentals will weaken. The subsequent trend will depend on whether inflation cools and whether economic activity shows signs of weakness sufficient to ease rate hike pressure.