Cryptocurrency prices, led by Bitcoin (BTC), plummeted last week due to tensions between Iran and Israel.
Cryptocurrency investment products saw outflows totaling $206 million between April 13 and April 19, according to a Coinshares report.
These outflows, according to Coinshares analysts, are primarily due to investor concerns over interest rate expectations.
"For the second consecutive week, cryptocurrency investment products saw outflows totaling $206 million as investors worried about interest rate expectations," the analysts said.
"The data indicates a decline in investor appetite for ETPs and ETFs amid expectations that the Fed will keep rates on hold for longer than expected," the report said.
The breakdown showed that BTC accounted for the bulk of the outflows with $192 million, while Ethereum (ETH) saw outflows of $34.2 million.
At the same time, sentiment improved slightly for a few assets.
Altcoins such as Litecoin and Chainlink managed to raise $3.2 million and $1.7 million, respectively.
The data showed that the US took the top spot with $244 million in outflows, followed by Germany with $8.3 million.
Meanwhile, regions such as Canada and Switzerland attracted inflows of $30 million and $8 million, respectively.
It is worth noting that BTC started this week with a price spike. At the time of writing, Bitcoin is trading at $65,849, showing an increase of 0.80% over the past 24 hours.
This trend has crypto investors optimistic that the outflow of funds from cryptocurrencies will stop.
Also on April 20, a halving took place on the BTC network, which reduced the miners' reward per block found from 6.25 BTC to 3.125 BTC. Historical data shows that halving leads to a shortage of BTC and could potentially lead to a new rally for the largest cryptocurrency by capitalization.
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