Crypto Sees Sharp Reversal as $1.73B Leaves Funds Despite Recent Inflows

Core Insights - The crypto market experienced a significant shift as $1.73 billion was withdrawn from digital asset investment products in one week, marking the largest outflow since mid-November 2025 [1][6] - This sudden reversal in sentiment follows a brief period of inflows, indicating heightened market uncertainty [1][5] Group 1: Major Outflows - Bitcoin investment products led the outflows with $1.09 billion, the largest weekly outflow since mid-November [2][6] - Ethereum followed with $630 million in outflows, reflecting a broader decline in risk appetite across major digital assets [2][6] Group 2: Altcoin Performance - XRP products saw a loss of $18.2 million, while short-Bitcoin products had minimal inflows of $0.5 million, suggesting limited aggressive positioning for further downside [3] - Solana attracted $17.1 million in new capital, indicating selective interest despite the overall market pullback [3] Group 3: Regional Variations - The United States accounted for nearly $1.8 billion of the outflows, indicating a significant retreat by American investors [4][6] - In contrast, Switzerland, Germany, and Canada saw inflows of $32.5 million, $19.1 million, and $33.5 million respectively, suggesting a more optimistic outlook in these regions [4][6] Group 4: Factors Behind the Reversal - Investor sentiment turned bearish due to diminishing hopes for potential interest rate cuts from central banks, particularly the Federal Reserve [7]