The post Four Weeks of Crypto Outflows: Is Investor Confidence Collapsing? appeared on BitcoinEthereumNews.com.

Crypto outflows totaled $876 million last week, completing a successive streak of negative flows in the previous four weeks. This continued sell-off has resulted in cumulative outflows of $4.75 billion over the past month, significantly reducing the year-to-date inflows to $2.6 billion. Resultantly, total assets under management (AuM) have declined by $39 billion from their peak, now standing at $142 billion—the lowest level since mid-November 2024. Crypto Outflows Reach $876 Million The latest CoinShares report indicates that US investors primarily drove the outflows, withdrawing $922 million from digital asset investment products. This bearish sentiment in the US contrasted with other regions, where investors saw the recent market pullback as a buying opportunity. Crypto Outflows Last Week. Source: CoinShares Report Meanwhile, Bitcoin remained the primary focus of crypto outflows last week. According to the report, investors pulled $756 million from BTC investment products over the past week. Notably, short-Bitcoin products—designed to profit from price declines—also saw outflows of $19.8 million, the largest since December 2024. This suggests that some investors may be nearing a point of capitulation in their Bitcoin investments, closing their short positions as uncertainty looms. Notwithstanding, last week’s crypto outflows marked another significant decline following prior weeks of sustained withdrawals. In the first week of March, digital asset investment products saw record-breaking outflows of $2.9 billion. As BeInCrypto reported, this was fueled by weak investor sentiment and heightened market fear. This had come on the heels of $508 million in outflows the previous week, amid investor caution, and $415 million in withdrawals before that, following the Federal Reserve’s hawkish rhetoric and concerns over inflation. The Federal Reserve’s stance on monetary policy has shaped investor behavior in recent months. As inflation exceeds expectations, the Fed has signaled that interest rates may remain elevated for an extended period, reducing liquidity…

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Filed under: News - @ March 10, 2025 4:25 pm