Last week, cryptocurrency funds had a good run, but things took a turn when investors started pulling money out.

In total, speculators put in $308 million across various funds, including Bitcoin ETFs. But on Thursday, the mood shifted dramatically. Investors withdrew a record $576 million, according to CoinShares. By Friday, that number climbed to a staggering $1 billion.

CoinShares explained that this sudden change likely came from the "hawkish dot plot" released by the Federal Reserve. Just the week before, these funds had added over $3.2 billion in assets. That means inflows dropped by more than 90% week-over-week.

The Fed did cut interest rates, which many expected. However, Chair Jerome Powell’s comments about not cutting rates aggressively in 2025 spooked a lot of investors. Typically, assets like Bitcoin do better when interest rates are low.

After the Fed’s speech, Bitcoin and other major cryptocurrencies took a hit. Right now, Bitcoin is trading at $93,245 per coin. That’s a nearly 13% drop over the past week, as CoinGecko reports. Just last Tuesday, Bitcoin hit a new all-time high of just over $108,000 before this decline.

Additionally, CoinShares noted that last week, investors looking for altcoin exposure switched from Solana to Ethereum through exchange-traded products. Ethereum, which is the second-largest cryptocurrency, saw inflows of $51 million, while Solana faced outflows of $8.7 million.

Investment funds tracking cryptocurrency prices have performed particularly well since Donald Trump was elected president. He ran on a platform that promised to support the digital asset industry.