WASHINGTON (dpa-AFX) - Cryptocurrencies are trading with heavy losses ahead of the decision of the Federal Open Markets Committee, scheduled to be released on Wednesday afternoon. Though the Fed is widely expected to hold rates steady, markets are keenly waiting for the forward guidance on interest rates as well as the economic projections by the Federal Reserve.
The CME FedWatch tool that tracks the expectations of interest rate traders shows the likelihood of interest rates remaining at the current level of 4.25-4.5 percent at 99 percent. It however declines to 81 percent by May, 34 percent by June, 22 percent by July, 9 percent by September, 7 percent by October and 4 percent by December. With the firm likelihood of two rate cuts in 2025, markets would examine the Fed's language and commentary on Wednesday to reassess rate cut expectations.
Taking cognizance of this, overall crypto market capitalization has declined 2.2 percent overnight. It is currently at $2.67 trillion.
Bitcoin has slipped 1.6 percent overnight to trade at $81,877.46. Ethereum has declined 0.65 percent in the past 24 hours to trade at $1,893.47.
4th ranked XRP, 6th ranked Solana, 8th ranked Cardano and 9th ranked Dogecoin have all lost more than 3 percent in the past 24 hours.
10th ranked TRON has however gained 3.5 percent and is the highest-ranking non-stablecoin crypto to trade with overnight gains.
Meanwhile, the CoinShares' Digital Asset Fund Flows Weekly report for the week ended March 14 showed net outflows of $1.7 billion versus net outflows of $876 million during the prior week.
With the 5th consecutive week of outflows, year-to-date inflows decreased to $912 million whereas the aggregate assets under management declined to $133.6 billion. According to the report, Bitcoin topped flows by asset, 21Shares topped flows by provider and United States topped flows by country during the past week.
Bitcoin-based products recorded outflows of $978 million followed by Ethereum-based products that witnessed outflows of $176 million. Short Bitcoin-based products also recorded outflows of $3.6 million.
XRP-based products recorded inflows of $1.8 million.
Close to 85 percent of the cumulative AUM of $133.6 billion is attributed to Bitcoin products that account for an AUM of $113.5 billion. Bitcoin's dominance of crypto market is much lower, at close to 60 percent.
AUM of Ethereum-based products stood at $9.9 billion. Multi-asset portfolios command assets under management of $6.5 billion. An AUM of $1.3 billion is attributed to Solana-based products. XRP-based products have AUM of $1 billion followed by Sui-based products with an AUM of $339 million.
The provider-wise analysis of flows inter alia shows outflows of $534 million from 21Shares AG. iShares ETF recorded net outflows of $401 million followed by Fidelity Wise Origin Bitcoin Fund that witnessed outflows of $317 million. Grayscale Investments recorded outflows of $134 million followed by ARK 21 Shares that recorded outflows of $68 million.
iShares ETF tops with a cumulative AUM of $50.4 billion implying a share of 37.8 percent. Grayscale Investments accounts for an AUM of $24.3 billion, which is close to 18 percent of the cumulative AUM of $133.6 billion. Fidelity commands an AUM of $15.6 billion.
The top 3 viz iShares, Grayscale Investments and Fidelity account for 67.65 percent of the total AUM.
Grayscale Investments, Fidelity Wise Origin Bitcoin Fund, 21Shares AG, Bitwise Funds Trust and CoinShares XBT have recorded net outflows in the year-to-date period. The country-wise analysis shows weekly outflows of $1.2 billion from United States. Switzerland followed with outflows of $528 million. Canada recorded outflows of $6.6 million followed Sweden that saw outflows of $5.1 million.
Germany received inflows of $8 million, followed by Brazil with inflows of $4.2 million.
Of the cumulative AUM of $133.6 billion, $100.5 billion or 75.2 percent is in United States. Switzerland follows with AUM of $5.3 billion whereas Canada accounts for an AUM of $4.9 billion. Germany accounts for an AUM of $4.8 billion followed by Sweden with an AUM of $2.9 billion.
Switzerland, Hong Kong and Sweden have recorded outflows over the year-to-date period.
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