Slipping Equities, Poor Macro Outlook Weighs on Crypto Prices

US outflows dominated last week’s crypto investment product moves, signaling inflation and Fed expectations are moving markets


whiteMocca/ modified by Blockworks


After more disappointing inflation data and deteriorating earnings estimates, equities are starting to lose momentum and reverse early gains. The bleak picture is not doing crypto any favors, analysts said. 

Short bitcoin funds saw a bounce last week with $10 million in inflows, according to data from CoinShares. Crypto products as a whole only lost $2 million to outflows last week, but US-based investment products shed $14 million, suggesting macro data and Federal Reserve expectations are weighing heavily on sentiment, James Butterfill, head of research at CoinShares said. 

Bitcoin (BTC) is down about 3% over the past five days while ether (ETH) has remained virtually flat. Both are still up roughly 40% year-to-date, though, and other analysts are hesitant to call for an investor attitude adjustment just yet. 

“This drop does not feel like a sentiment shift, more like a technical adjustment,” Noelle Acheson, author of Crypto is Macro Now and former head of market insights at Genesis, wrote in a note. “Call activity seems to be concentrated around the $28,000-30,000 strikes, signaling expectations of further increases.”

Higher-than-expected inflation numbers moved the probability of the Fed hiking at an increased pace in March higher, putting pressure on markets broadly, Acheson said. She is calling for a 50 basis point increase, noting the general expectations, as measured by CME Group, are leaning too optimistic. 

Markets are currently only pricing in about a 26% chance of a 50 basis point hike, leaning in favor of another 25 basis point bump

The S&P 500 and Nasdaq indexes have shed 2.6% and 3.2% in the past five trading days, cutting into their year-to-date gains but still remaining in the green for 2023, so far. Earnings expectations are the driving force behind the selloff, Nicolas Colas, co-founder of Data Trek Research, said Monday. 

The fourth quarter of 2022 S&P 500 earnings are set to post the first year over year negative comparables since the start of the pandemic, Colas noted.  

“Q1/Q2 2023 will all but certainly continue this trend,” he added. “This means margins will remain under pressure until at least Q3 2023. We are in an ‘earnings recession.’”

Don’t miss the next big story – join our free daily newsletter.


Upcoming Events

Hilton Metropole | 225 Edgware Rd, London

Mon - Wed, March 18 - 20, 2024

Crypto’s premier institutional conference returns to London in March 2024. The DAS: London Experience: Attend expert-led panel discussions and fireside chats Hear the latest developments regarding the crypto and digital asset regulatory environment directly from policymakers and experts.

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Top Icon.png


Osmosis thrived in H2 2023 on the back of increased DeFi activity deriving from recently launched Cosmos-related projects and better market conditions. With new value accrual mechanisms for the native token, Osmosis is well-positioned to continue its strong performance in 2024.



Though the opposing flow trend is likely to slow over time, industry watchers note, bitcoin fund assets could one day eclipse the $90 billion gold ETF space


Celestia had the first mover advantage. EigenDA has staked ether. What sets Avail apart?


Bitcoin moved 1% higher Monday morning in New York, Matrixport analysts say $62,000 could happen next month


It’s hard to believe right now that crypto — even with all of its flexibility and massive capabilities — could ever be like cash on the internet


Michael Saylor announced Monday morning that MicroStrategy bought 3k more bitcoin after the X account was compromised over the weekend


Plus, Pudgy Penguins grows its brand and a group of Autoglyphs sell for $14.5 million