Last week saw a massive $508 million exodus from crypto investment funds, according to CoinShares. This follows another $924 million outflow the week before, a stark contrast to the previous 18 weeks which saw a whopping $29 billion inflow. CoinShares points to general economic uncertainty as the likely culprit.
Altcoins Shine While Bitcoin Bleeds
While overall crypto funds bled money, some altcoins bucked the trend. XRP, in particular, saw a significant $38.3 million inflow, bringing its total inflows since mid-November to a massive $819 million. Investors seem optimistic about the resolution of the SEC lawsuit against XRP. Other altcoins like Solana, Ethereum, and Sui also saw smaller inflows.
However, Bitcoin took the biggest hit, with a staggering $571 million outflow. Interestingly, some investors actually increased their bets against Bitcoin (short positions), showing a divided investor sentiment.
Price Drops Across the Board
Despite some altcoins seeing inflows, the price action tells a different story. Bitcoin, Ethereum, XRP, and Solana all saw price drops over the past week. At the time of writing:
- Bitcoin is down slightly.
- Ethereum is down significantly.
- XRP is also down.
- Solana is down considerably.
These drops broke key support levels for several cryptocurrencies.
Why the Money’s Leaving
CoinShares’ Head of Research, James Butterfill, suggests investors are being cautious due to the ongoing economic uncertainty, especially regarding trade, inflation, and monetary policy. Trading volume also dropped significantly, reflecting a less confident market, particularly in the US, which saw the largest outflows. Europe, on the other hand, continued to see inflows.
