Crypto markets saw another week of significant outflows, totaling a hefty $876 million. This continues a four-week trend of investors pulling their money out. While the outflow was smaller than in previous weeks, the overall sentiment remains negative, according to CoinShares.
Where Did the Money Go?
Over the past month, a staggering $4.75 billion has flowed out of crypto investment products. This has shrunk the year-to-date inflows to just $2.6 billion and reduced total assets under management (AuM) to $142 billion—the lowest since mid-November 2024. That’s a $39 billion drop from the peak!
US Investors Lead the Retreat
American investors were the biggest sellers, pulling out a massive $922 million. However, it wasn’t all doom and gloom everywhere. Investors in Switzerland, Canada, and Germany actually saw inflows, suggesting some are viewing the dip as a buying opportunity.
Bitcoin Takes the Biggest Hit
Bitcoin bore the brunt of the outflows, losing $756 million. Surprisingly, even short-Bitcoin products saw outflows, suggesting some investors are covering their bets. Ethereum also suffered, with $89 million in outflows. Other altcoins like Tron and Aave also saw money leave. However, a few altcoins like Solana, XRP, and Sui bucked the trend and saw inflows.
Overall Market Downward Trend
The overall crypto market mirrored these negative flows. The total market capitalization plummeted by roughly $450 billion in a week, falling from $3.26 trillion to $2.81 trillion. Bitcoin’s price dropped 11.3% over the week, and is currently down nearly 25% from its all-time high. Ethereum and Solana also experienced significant price drops.
