Crypto Outflows Hit $1.7 Billion as Bitcoin Comes Under Pressure From Withdrawals
The crypto market continues to face a prolonged wave of capital outflows, with negative sentiment still weighing heavily. According to the latest report from CoinShares, digital asset investment products have recorded their fifth consecutive week of outflows.
The exodus comes amid bearish sentiment, particularly for Bitcoin (BTC), whose price remains below the key $90,000 level.
Crypto Outflows Near $1.7 Billion
The report shows that total outflows from crypto investment products have hit $1.687 billion, bringing the cumulative loss in the outflow streak to $6.4 billion. This is the longest outflow of capital in 17 consecutive days since 2015.
Despite the market downturn, year-to-date (YTD) inflows remain positive at $912 million. However, the recent market correction has seen total assets under management (AuM) across digital asset products decline by $48 billion.
US Leads Outflows
According to the report, the US market was the epicenter of crypto outflows, accounting for $1.16 billion, or 93% of the total outflows. Meanwhile, Germany recorded inflows of just $8 million, reflecting the divergence in sentiment across regions.
Bitcoin remains the worst-hit asset, with another $978 million outflows in the past week alone, bringing the total outflows over the past five weeks to $5.4 billion. Bitcoin short positions also saw outflows of $3.6 million, indicating a general decline in bearish bets.
XRP Attracts Positive Investment Flows
Despite the overall bearish market, XRP has seen an increase in investment flows, with $1.8 million inflows over the past week, standing out as one of the few assets to maintain positive momentum. This optimism may stem from expectations of a resolution to the legal battle between Ripple and the US Securities and Exchange Commission (SEC). There is also hope that the SEC will classify XRP as a commodity.
Binance Hit Hard
One of the notable events during this period was the dramatic decline in assets under management on the Binance exchange. A major investor withdrawal left Binance with just $15 million in total AuM.
Persistent Negative Sentiment
This prolonged sell-off is the result of the negative sentiment that has been dominating the market for weeks. Last week, outflows from the crypto market reached $876 million, with US investors leading the liquidation. Prior to that, outflows had reached nearly $3 billion, reflecting a decline in confidence and growing fear among the investment community.
The Future of Cryptocurrency
The continued outflows and the decline in AuM suggest that confidence in the crypto market has not been fully restored. However, positive signals such as XRP inflows and modest gains in Germany suggest that investors have not completely lost faith in the sector.