Skip to main content

Crypto Outflows Continue as US Investors Pull Back: $876M in One Week

CoinShares, a prominent European digital asset manager, earlier today released its latest report on cryptocurrency investment flows. The findings revealed that digital asset investment products experienced their fourth consecutive week of outflows, totaling $876 million.

Despite the slowdown in outflows compared to previous weeks, CoinShares’ Head of Research, James Butterfill, noted that investor sentiment continues to lean bearish.

Regional and Asset-Specific Trends

Over the past four-week, cumulative outflows reached $4.75 billion, according to CoinShares, reducing the year-to-date inflows to $2.6 billion. As a result, the company’s total assets under management (AuM) in digital assets have declined by $39 billion from their previous peak, now sitting at $142 billion.

This marks the lowest point for AuM since mid-November 2024, driven by a combination of negative price movements and persistent outflows. The report further indicated that US investors showed the strongest bearish tendencies, pulling out $922 million during the week.

Crypto asset fund flow by region

In contrast, other regions interpreted the market conditions as a buying opportunity. Switzerland led the inflows with $23 million, followed by Canada and Germany with $14.7 million and $13.3 million respectively.

In terms of asset-specific trends, Bitcoin dominated the outflows, shedding $756 million over the week. Interestingly, short-Bitcoin products also saw outflows totaling $19.8 million, the largest since December 2024.

Altcoins were not immune to this negative sentiment either, as Ethereum experienced $89 million in outflows, while Tron and Aave saw $32 million and $2.4 million exit respectively. Conversely, a few altcoins recorded inflows, with Solana attracting $16.4 million, XRP gaining $5.6 million, and Sui receiving $2.7 million.

Crypto asset fund flows.

Crypto Market Performance

Amid the negative fund flows reported by CoinShares, the overall crypto market performance has shown a similar downward trend, reflecting a steady decline in valuation.

Particularly, according to data from CoinGecko, over the past week, the global cryptocurrency market capitalization has plunged from $3.26 trillion seen last Monday to $2.81 trillion as of today—roughly $450 billion decline.

This drop comes as a result of the unstable upward momentum from BTC. This lack of upside momentum has led to BTC seeing more decrease in price than increase. In the past 7 days, Bitcoin has seen an 11.3% drop.

Its past day price action has also added to this negative performance with BTC currently trading at a price of $82,370, marking an additional 2.3% drop to its price.

Bitcoin (BTC) price chart on TradingView amid crypto fund flows

The continous drop from BTC has been pushing the asset further away from its all-time high above $109,000 registered in January. At current market price, BTC is down nearly 25% from this peak.

Other major cryptocurrencies including Ethereum and Solana have also followed BTC closely in its bearishness with both assets down by 11.9% and 22.9% respectively over the past 7 days.

Featured image created with DALL-E, Chart from TradingView



from Bitcoinist.com https://ift.tt/wcAQNRT
Labels:

Comments

Post a Comment

Popular posts from this blog

Bitcoin ETFs Post Second Straight Week Of $500 Million Outflow — Details

The US-based spot Bitcoin ETFs (exchange-traded funds) recorded their second consecutive week of significant outflows over the last five-day trading period. This recent run of disappointing performances reflects the ongoing shift in investor sentiment in the United States. Over the past year, strong inflows into the US Bitcoin ETF market have constantly been associated with positive action for the BTC price. Fittingly, the price of Bitcoin has been consolidating over the past few weeks, struggling to pick up any real momentum. Bitcoin ETFs Record Fourth Consecutive Outflow Day According to the latest market data , the US Bitcoin ETFs registered a total daily outflow of $62.77 million on Friday, February 21. This latest round of withdrawals marked the fourth straight day (and the eighth day in the last nine trading days) that the crypto-based products would witness a net capital outflow. The Grayscale Bitcoin Trust (with the ticker GBTC) accounted for a larger percentage of Friday’...
Post a Comment
Read more

Bitcoin Remains Range-Bound As Volatility Declines – Analyst Explains Price Action

Bitcoin has experienced frustrating price action in recent weeks, leaving investors impatient about its short-term direction. The price has been testing crucial supply levels between $98K and $100K, struggling to break out as uncertainty dominates the market. The lack of a clear move has led to speculation about whether BTC is preparing for a breakout or another correction. Adding to the uncertainty, the market was hit by negative news on Friday when crypto exchange Bybit was hacked, resulting in the theft of $1.4 billion in ETH. The incident caused fear and volatility, briefly dragging prices lower. However, Bybit responded quickly to reassure investors, easing some of the initial panic and stabilizing the market. Despite this, Bitcoin continues to consolidate in a tight range. Crypto expert Daan shared an analysis on X, noting that BTC is still ranging while volatility is steadily decreasing. As price compression increases, traders are on high alert for a potential explosive move....
Post a Comment
Read more

OpenSea Dodges A Bullet As SEC Drops Investigation—Details

In a move that many in the crypto industry view as a positive signal, the US Securities and Exchange Commission (SEC) has officially discontinued its investigation into OpenSea, the leading NFT marketplace. This decision concludes months of uncertainty regarding the regulatory status of NFTs and their classification under US securities laws. SEC Decision Signals A Shift On February 21, 2025, Devin Finzer, the CEO and co-founder of OpenSea, said the SEC will not take any enforcement action against the firm. This comes following the August 2024 Wells Notice to OpenSea issued by the SEC, which indicated the possibility of legal action on alleged unregistered securities offenses. The outcome of this case suggests a possible shift in the way authorities handle NFTs, therefore affecting the whole scene of digital assets. For the industry, this outcome has been seen as a major turning point. Though they are in rivalry with OpenSea, Chris Akhavan, the Chief Business Officer of Magic Eden,...
Post a Comment
Read more