Crypto investors pulled out a total of $240 million last week, according to CoinShares. This reflects a cautious mood due to global economic worries, especially after recent US tariff announcements.
Bitcoin and Ethereum Lead the Exodus
Bitcoin saw the biggest outflow, losing $207 million. Even with this, Bitcoin’s year-to-date inflows are still a hefty $1.3 billion, showing that long-term investors remain relatively confident. Ethereum wasn’t far behind, with $37.7 million in outflows. Other major cryptocurrencies like Solana and Sui also saw outflows. However, some smaller tokens, like Toncoin, actually saw inflows of $1.1 million.
A Bloody Monday for Crypto
Despite some positive movement in smaller coins, the week ended with a significant market drop. Monday morning saw a major sell-off. Bitcoin fell almost 10%, dipping below $75,000, while Ethereum and other major cryptos plunged by almost 20%, with Ethereum falling below $1,500 for the first time since October 2023. This caused the overall crypto market capitalization to plummet by 9.6%.
Where the Money Went (and Came From)
Most of the withdrawals came from US and German investors ($210 million and $17.7 million respectively). Interestingly, Canadian investors added $4.8 million. There was also renewed interest in blockchain-related stocks, with $8 million in inflows for the second week in a row. Some see the recent price drops as a good opportunity to buy.
A Surprisingly Stable Market
Despite the outflows, the total assets under management (AUM) only saw a slight increase of 0.8%, reaching $132.6 billion. CoinShares’ James Butterfill pointed out that this is pretty impressive compared to traditional markets, where MSCI World equities fell by 8.5% during the same period. He highlighted the resilience of digital assets in the face of economic uncertainty.
