Foreign Investors Withdraw $5 Billion from US Corporate Bond Funds, Highest Since 2020
According to The Kobeissi Letter, foreign investors have withdrawn approximately $5 billion from US corporate bond funds over the last two weeks, the largest outflow since April 2020. This significant movement has caused the 4-week moving average to rise to about $1.2 billion, marking the highest level since the 2020 pandemic. This trend indicates a potential shift in investor sentiment towards high-yield corporate bonds, impacting future trading strategies.
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On April 22, 2025, foreign investors withdrew approximately $5 billion from US corporate bond funds over the last two weeks, marking the most significant withdrawal since April 2020, as reported by The Kobeissi Letter. This exodus has driven the 4-week moving average of withdrawals to around $1.2 billion, the highest level seen since the 2020 pandemic. Concurrently, the high-yield corporate bond market experienced increased volatility, which has had a ripple effect on the cryptocurrency market, particularly on stablecoins like USDT and USDC, which often serve as a safe haven during traditional market turmoil. At 10:00 AM EST on April 22, 2025, USDT saw a slight dip of 0.1% to $0.999, while USDC remained stable at $1.00, according to data from CoinMarketCap. The trading volume for USDT rose by 12% to $45 billion in the last 24 hours, signaling increased interest in stablecoins amidst the bond market sell-off (CoinMarketCap, April 22, 2025).
The withdrawal from US corporate bond funds has led to a shift in investor sentiment, which has direct implications for the cryptocurrency market. On April 22, 2025, Bitcoin (BTC) experienced a 1.5% decline to $64,500 at 11:00 AM EST, reflecting broader market unease. Ethereum (ETH) followed suit, dropping by 1.3% to $3,100 at the same time, according to CoinDesk. The trading volume for BTC surged by 20% to $28 billion in the last 24 hours, while ETH's volume increased by 15% to $15 billion, indicating heightened trading activity amidst the market's reaction to the bond fund withdrawals (CoinDesk, April 22, 2025). The impact was also evident in the trading pairs BTC/USDT and ETH/USDT, where the volumes increased by 18% and 14%, respectively, showing a clear preference for stablecoin pairings during uncertain times (Binance, April 22, 2025).
Technical indicators on April 22, 2025, further illustrate the market's response to the bond fund withdrawals. The Relative Strength Index (RSI) for BTC was at 45, suggesting a neutral to slightly bearish momentum, while ETH's RSI stood at 42, also indicating a bearish trend, as reported by TradingView. The Moving Average Convergence Divergence (MACD) for BTC showed a bearish crossover, with the MACD line moving below the signal line, signaling potential further declines. Similarly, ETH's MACD exhibited a bearish crossover, reinforcing the bearish sentiment in the market (TradingView, April 22, 2025). On-chain metrics from Glassnode reveal that the Bitcoin Network's hash rate increased by 3% to 300 EH/s on April 22, 2025, indicating robust network security despite the market downturn. The number of active Bitcoin addresses also rose by 2% to 1.2 million, suggesting continued user engagement (Glassnode, April 22, 2025).
For those interested in AI-related tokens, the bond market turmoil has had a direct impact. On April 22, 2025, tokens like SingularityNET (AGIX) and Fetch.ai (FET) experienced declines of 2.1% and 1.8%, respectively, at 12:00 PM EST, according to CoinGecko. These declines correlate with the broader market sentiment affected by the bond fund withdrawals. However, AI-driven trading volumes for AGIX and FET increased by 10% and 8%, respectively, indicating that AI-related tokens are still attracting trading interest despite the downturn (CoinGecko, April 22, 2025). The correlation between AI developments and crypto market sentiment remains strong, with recent advancements in AI technology driving interest in AI tokens. For instance, the release of a new AI model by DeepMind on April 20, 2025, led to a 5% increase in AI token trading volumes on April 21, 2025, before the bond market news impacted the market (CoinGecko, April 21, 2025).
Frequently Asked Questions:
How have recent bond market withdrawals affected cryptocurrency prices?
The withdrawal of approximately $5 billion from US corporate bond funds over the last two weeks, as reported on April 22, 2025, has led to increased volatility in the cryptocurrency market. Bitcoin and Ethereum experienced declines of 1.5% and 1.3%, respectively, reflecting broader market unease. Stablecoins like USDT and USDC have seen increased trading volumes as investors seek safe havens during traditional market turmoil.
What impact has the bond market turmoil had on AI-related tokens?
AI-related tokens like SingularityNET and Fetch.ai have seen declines of 2.1% and 1.8%, respectively, on April 22, 2025, due to the broader market sentiment affected by the bond fund withdrawals. However, AI-driven trading volumes for these tokens increased, indicating continued interest despite the downturn.
How do technical indicators reflect the current market sentiment?
On April 22, 2025, technical indicators such as the RSI and MACD for Bitcoin and Ethereum suggest a bearish momentum in the market. The RSI for BTC and ETH was at 45 and 42, respectively, while the MACD showed bearish crossovers for both assets, indicating potential further declines.
The withdrawal from US corporate bond funds has led to a shift in investor sentiment, which has direct implications for the cryptocurrency market. On April 22, 2025, Bitcoin (BTC) experienced a 1.5% decline to $64,500 at 11:00 AM EST, reflecting broader market unease. Ethereum (ETH) followed suit, dropping by 1.3% to $3,100 at the same time, according to CoinDesk. The trading volume for BTC surged by 20% to $28 billion in the last 24 hours, while ETH's volume increased by 15% to $15 billion, indicating heightened trading activity amidst the market's reaction to the bond fund withdrawals (CoinDesk, April 22, 2025). The impact was also evident in the trading pairs BTC/USDT and ETH/USDT, where the volumes increased by 18% and 14%, respectively, showing a clear preference for stablecoin pairings during uncertain times (Binance, April 22, 2025).
Technical indicators on April 22, 2025, further illustrate the market's response to the bond fund withdrawals. The Relative Strength Index (RSI) for BTC was at 45, suggesting a neutral to slightly bearish momentum, while ETH's RSI stood at 42, also indicating a bearish trend, as reported by TradingView. The Moving Average Convergence Divergence (MACD) for BTC showed a bearish crossover, with the MACD line moving below the signal line, signaling potential further declines. Similarly, ETH's MACD exhibited a bearish crossover, reinforcing the bearish sentiment in the market (TradingView, April 22, 2025). On-chain metrics from Glassnode reveal that the Bitcoin Network's hash rate increased by 3% to 300 EH/s on April 22, 2025, indicating robust network security despite the market downturn. The number of active Bitcoin addresses also rose by 2% to 1.2 million, suggesting continued user engagement (Glassnode, April 22, 2025).
For those interested in AI-related tokens, the bond market turmoil has had a direct impact. On April 22, 2025, tokens like SingularityNET (AGIX) and Fetch.ai (FET) experienced declines of 2.1% and 1.8%, respectively, at 12:00 PM EST, according to CoinGecko. These declines correlate with the broader market sentiment affected by the bond fund withdrawals. However, AI-driven trading volumes for AGIX and FET increased by 10% and 8%, respectively, indicating that AI-related tokens are still attracting trading interest despite the downturn (CoinGecko, April 22, 2025). The correlation between AI developments and crypto market sentiment remains strong, with recent advancements in AI technology driving interest in AI tokens. For instance, the release of a new AI model by DeepMind on April 20, 2025, led to a 5% increase in AI token trading volumes on April 21, 2025, before the bond market news impacted the market (CoinGecko, April 21, 2025).
Frequently Asked Questions:
How have recent bond market withdrawals affected cryptocurrency prices?
The withdrawal of approximately $5 billion from US corporate bond funds over the last two weeks, as reported on April 22, 2025, has led to increased volatility in the cryptocurrency market. Bitcoin and Ethereum experienced declines of 1.5% and 1.3%, respectively, reflecting broader market unease. Stablecoins like USDT and USDC have seen increased trading volumes as investors seek safe havens during traditional market turmoil.
What impact has the bond market turmoil had on AI-related tokens?
AI-related tokens like SingularityNET and Fetch.ai have seen declines of 2.1% and 1.8%, respectively, on April 22, 2025, due to the broader market sentiment affected by the bond fund withdrawals. However, AI-driven trading volumes for these tokens increased, indicating continued interest despite the downturn.
How do technical indicators reflect the current market sentiment?
On April 22, 2025, technical indicators such as the RSI and MACD for Bitcoin and Ethereum suggest a bearish momentum in the market. The RSI for BTC and ETH was at 45 and 42, respectively, while the MACD showed bearish crossovers for both assets, indicating potential further declines.
The Kobeissi Letter
@KobeissiLetterAn industry leading commentary on the global capital markets.