Crypto Journalist

Anas Hassan

Crypto Journalist

Anas Hassan

About Author

Anas is a crypto native journalist and SEO writer with over five years of writing experience covering blockchain, crypto, DeFi, and emerging tech.

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Last updated: 

September 8, 2025

Crypto investment products experienced $352 million in weekly outflows as Federal Reserve rate-cut optimism failed to boost digital asset sentiment, with Ethereum leading the exodus at $912 million while Bitcoin attracted $524 million in inflows.

CoinShares’ report shows trading volumes dropped 27% week-over-week, suggesting a cooled appetite for digital assets despite improving prospects for September interest rate cuts.

Year-to-date inflows remain strong at $35.2 billion, running 4.2% ahead of last year’s total.

Regional Divergence Amid Fed Uncertainty

The United States recorded $440 million in outflows, while Germany and Hong Kong saw inflows of $85.1 million and $8.1 million, respectively.

Ethereum products experienced daily outflows across seven consecutive trading days spanning multiple ETP issuers.

According to SosoValue, Spot Ethereum ETFs posted a record $788 million in weekly outflows, with no single fund recording net inflows.

Bitcoin spot ETFs contrasted with $246 million weekly inflows, marking two consecutive weeks of positive flows.

Solana extended its streak to 21 consecutive weeks of inflows totaling $1.16 billion year to date, while XRP reached $1.22 billion over the same period.

Both assets continue attracting steady weekly inflows of $16.1 million and $14.7 million, respectively.

The outflows occurred despite weak August payroll data that reinforced rate cut expectations. U.S. job growth slowed sharply, with unemployment rising to 4.3%, the highest level since 2021, strengthening the case for monetary easing.

According to Reuters, Standard Chartered has revised its projection to expect 50 basis point cuts at September’s Federal Open Market Committee meeting, doubling its previous forecasts.

Markets price in a 90% probability of 25-basis-point reductions with a 10% chance of larger cuts.

Similarly, Morgan Stanley and Deutsche Bank maintain that August employment data wasn’t weak enough for 50-basis-point cuts, though consecutive meeting reductions remain possible.

Fed Chair Jerome Powell previously indicated that rate cuts were possible while cautioning about persistent inflation threats.

Traditional Markets Rally While Crypto Cools

Stock markets responded positively to rate cut optimism, with S&P 500 futures gaining 0.2% on Monday following weak employment data.

European and Asian shares rose 0.3% and 0.6%, respectively, as Treasury yields held at lower levels.

Gold surged to record highs above $3,630 per ounce, gaining 38% year to date after a 27% increase in 2024.

Lower borrowing costs enhance non-yielding bullion appeal while geopolitical uncertainty drives safe-haven demand amid Fed independence concerns.

China’s central bank extended gold purchases to 10 consecutive months in August as part of dollar diversification efforts.

Additionally, Goldman Sachs projects gold could reach $5,000 per ounce if Federal Reserve independence deteriorates and investors shift from Treasuries.

The Trump administration moves to exempt gold bullion from country-based tariffs, formalizing previous customs rulings.

Political uncertainty in Japan and France contributed to dollar weakness despite rate-cut expectations supporting traditional risk assets.

Oil prices climbed more than 2% after OPEC+ agreed to slower output increases from October amid weaker global demand expectations.

Brent crude and West Texas Intermediate both posted strong gains following the production adjustment announcement.

Industry Outlook Amid Rate Cut Cycle

Earlier this month, Crypto.com CEO Kris Marszalek expected a strong fourth-quarter performance if September rate cuts materialize, citing improved liquidity conditions for risk assets.

This projection came as the exchange generated $1.5 billion in revenue last year with a $1 billion gross profit.

However, late last month, Santiment warned that social media discussion of Federal Reserve rate cuts reached an 11-month peak, historically indicating euphoric levels preceding market corrections.

Bitcoin exchange supply accumulation has risen by approximately 70,000 coins since June.

Ethereum technical indicators suggest caution despite strong price performance, with short-term MVRV approaching 15% and long-term readings at 58.5%.

These levels historically correspond with profit-taking activity and potential retracements.

Manufacturing PMI data could influence rate-cut timing, with forecasts expecting ISM Manufacturing PMI at 48.9 versus the previous 48.0. Levels below 49.5 typically extend correction periods while improvements support recovery narratives.

Amid this fed rate-cut optimism, European Central Bank President Christine Lagarde warned, in regard to Trump’s threats to the Fed chair, that undermining Fed independence would create “very serious danger” for global economic stability.

She believes that political control over monetary policy carries “very worrying” implications for worldwide markets.

Two stocks purchased by investment legend Warren Buffett’s firm in the first quarter of the year have witnessed significant gains in 2025.

Filings with the U.S. Securities and Exchange Commission (SEC) earlier this year indicate Buffett’s Berkshire Hathaway bought 238,613 new shares of Domino’s Pizza (DPZ) in Q1, worth approximately $204 million.

The Omaha-based holding company also bought 112,401 new shares of Heico Corporation (HEI), an aerospace and electronics firm. Those new shares were worth nearly $50 million in Q1.

Domino’s stock is up more than 2.5% in the past five days, more than 4% in the past month and more than 13.5% year-to-date. Heico’s stock is up more than 35% in 2025.

Berkshire Hathaway added shares in both firms while hawking $3.23 billion worth of stock in the financial giants Citigroup, Bank of America and Capital One in Q1.

Buffett’s firm completely exited Citigroup in the first quarter, unloading its remaining 14,639,502 shares worth about $1 billion.

Berkshire sold an additional 48.7 million Bank of America shares in Q1, worth about $2.19 billion, and 300,000 shares in Capital One exposure, worth more than $46 million.

Buffett’s firm also sold all of its remaining 40,180,168 shares of the Brazilian fintech Nu Holdings, which were worth more than $416 million.

Beyond banking, Berkshire also reduced positions in Charter Communications, DaVita, T-Mobile and Liberty Media’s Formula One stock.

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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