Solana Just Booked Its Second-Biggest Week in History Despite Choppy Market
Digital asset investment products faced $360 million in outflows last week, influenced by Fed Chair Powell's hawkish comments about a possible December interest rate cut. While solana led inflows with $421 million, heavily supported by new US ETFs, bitcoin saw significant outflows of $946 million, particularly from US-listed vehicles where fund pessimism was centered. Other cryptocurrencies like Ethereum and XRP experienced moderate inflows. Meanwhile, Bitcoin's market hovered above the $100,000 threshold, described as a critical support zone for future price movements.
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Market Reaction to US Interest Rate Cut
Digital asset investment products recorded outflows of $360 million last week, despite the market recently digesting yet another US interest rate cut. The selling pressure wasn’t driven by the rate cut itself, but by how investors interpreted Fed Chair Jerome Powell’s remarks during the post-FOMC press conference. Powell made it clear that another interest rate cut in December is “not a foregone conclusion,” a surprisingly hawkish communication that appears to have negatively impacted market sentiment. This reaction was further amplified by the absence of any high-impact US macroeconomic data that could have helped traders reassess their expectations.
Solana's Dominance Amid Market Outflows
While the overall market experienced negative outflows, Solana stood out as a remarkable performer, pulling in $421 million in inflows last week. This figure represents the second-largest weekly inflow on record, driven largely by strong investments into new US ETFs. As a result, Solana’s year-to-date inflows reached an impressive $3.3 billion, according to CoinShares’ Digital Asset Fund Flows Weekly Report.
Performance of Other Digital Assets
Apart from Solana, Ethereum also saw net inflows of $57.6 million, though daily flow patterns indicated mixed investor sentiment. Other assets also showed positive results: XRP secured $43.2 million, Sui brought in $9.4 million, Litecoin followed with $1.5 million, Cardano contributed $0.7 million, and Chainlink added $0.5 million. Furthermore, multi-asset ETPs saw an additional $8.3 million in inflows.
Bitcoin and Regional Outflows
The most significant drag on the market came from Bitcoin, as US Bitcoin ETFs saw massive outflows of $946 million. The United States remained the epicenter of pessimism, with $439 million exiting American-listed investment vehicles. Sweden added another $11 million in outflows. These losses were partially offset by gains from other regions: Germany received $32 million, Switzerland saw inflows of $30.8 million, while Canada, Australia, and Brazil posted smaller but positive totals of $8.5 million, $7.2 million, and $1.3 million, respectively.
Bitcoin's $100K Threshold: A Make-or-Break Moment
November has proven to be a volatile month for cryptocurrency markets. Bitcoin has stayed above the $100,000 threshold for 180 days, without a single daily close below it. Swissblock refers to this range as a structural floor, not merely a psychological level, highlighting its foundation on heavy trading volume and high confluence. This situation presents Bitcoin with a sharp asymmetric setup: if the asset continues defending this floor, the bullish structure resets and paves the way for a potential upside leg. However, should this level give way, analysts warn of minimal support beneath, signaling potential significant downside risks.