The latest inflows built on the previous week’s $1 billion. Bitcoin dominated with $352 million, while XRP and Chainlink also saw strong demand. Chainlink posted a record week that accounted for more than half its total AUM. At the same time, expectations of a Federal Reserve rate cut surged to 92%, fueling speculation that December could be the start of a broader market rebound. Coinbase Institutional said improving liquidity and easing macro pressures may set the stage for a “December reversal,” though analysts still warn that Jerome Powell’s tone could determine short-term momentum. Technical signals and speculation about a more dovish future Fed chair add even more support to an optimistic outlook heading into 2026. Crypto Investment Inflows Rise Cryptocurrency investment products continued their positive momentum last week with their second straight week of gains after a period of heavy outflows. According to the latest report from CoinShares , crypto exchange-traded products (ETPs) brought in $716 million in new inflows, building on the previous week’s $1 billion. This could suggest that there has been a shift in sentiment after a difficult stretch in November. Weekly crypto asset flows (Source: CoinShares ) Despite the progress, the report pointed out that some daily data showed minor outflows on Thursday and Friday, which CoinShares’ head of research James Butterfill attributed to US macroeconomic indicators pointing to ongoing inflationary pressures. The renewed inflows helped lift total assets under management for crypto investment products above $180 billion, which is an 8% recovery from last month’s lows, when prolonged outflows reached $5.5 billion over four weeks. Even so, AUM is still below its all-time peak of $264 billion. Bitcoin once again led the charge by attracting $352 million in inflows as investors seemed confident in the market’s direction. XRP funds followed with $244 million. Chainlink was a standout performer with a record $52.8 million in inflows, which amounted to more than half of its total AUM. Ethereum funds, on the other hand, saw more modest inflows of $39 million. Short Bitcoin products continued to lose favor after posting $19 million in outflows. Flows by asset (Source: CoinShares ) Among issuers, ProShares claimed the top spot with $210 million in inflows, while BlackRock’s iShares products saw a surprising $105 million in outflows despite being the largest issuer in the market. ARK Invest and Grayscale also experienced outflows, at $78 million and $7 million respectively. Geographically, most major regions reported inflows, with the United States leading at $483 million, followed by Germany with $97 million and Canada with nearly $81 million. Sweden was the exception by recording $5.6 million in outflows last week. The country now has $836 million in year-to-date outflows, the highest globally. Bitcoin Braces for a December Comeback Bitcoin may be entering the early stages of a December rebound as macroeconomic conditions begin to shift in its favor, but analysts warn the path to a full “Santa rally” is still heavily dependent on the Federal Reserve’s tone. According to a new report from Coinbase Institutional, improving liquidity conditions and sharply rising odds of an interest rate cut are setting the stage for a possible revival in crypto markets before year-end. Coinbase pointed out that Fed cut expectations climbed to 92%, which typically boosts risk assets like Bitcoin. The firm previously forecasted weakness heading into the final quarter but expected a “December reversal” based partly on its global M2 money supply index, which tracks the total amount of fiat currency in circulation. Despite these macro tailwinds, investor sentiment is still dominated by fear. Both institutional players and retail traders have been slow to re-enter the market, which left Bitcoin stuck in a holding pattern. Analysts say this cautious mood could quickly reverse if the Fed delivers a rate cut paired with an end to quantitative tightening. Nic Puckrin , co-founder of Coin Bureau, said in an interview that such a decision will remove “little standing in the way” of a holiday-season rally unless major geopolitical turmoil intervenes. However, any hawkish nuance in Jerome Powell’s press conference could cap upside momentum and reintroduce volatility. Investors will be closely dissecting Powell’s comments for hints about the central bank’s outlook heading into 2026, a period that some expect to bring more accommodative policies. Bitcoin’s price action over the past month (Source: CoinMarketCap ) Analysts like Chris Kim of Axis attribute Bitcoin’s recent November sell pressure to Powell’s previous hawkish comments but believe December is primed for recovery. He pointed to Bitcoin’s successful retest of the $80,000 region and 100-week moving average as a supportive technical signal, alongside incremental positives such as Vanguard allowing ETF trading. Speculation around Kevin Hassett potentially becoming the next Federal Reserve Chair in early 2026 is also adding optimism to long-term crypto forecasts.
