Weekly Outflows Show Shifting Investor Preferences
Bitcoin investment products recorded $264.4 million in outflows last week, marking the third straight week of losses. But here’s something interesting—the pace of withdrawals slowed dramatically. Meanwhile, altcoin funds posted their first inflows since mid-January, according to CoinShares’ latest report.
XRP-led products attracted $63.1 million in fresh capital. Ethereum funds added $5.3 million, and Solana funds saw $8.2 million in inflows. Overall, crypto fund outflows fell to $187 million. That’s down sharply from $1.695 billion the previous week and $1.73 billion the week before that.
James Butterfill, CoinShares’ head of research, said the slowdown looks promising. He noted that historically, when fund flow deceleration happens like this, it often signals a potential market inflection point. But he was quick to add that the change in direction alone isn’t enough to confirm a real turnaround.
Market Conditions and Analyst Perspectives
The moderation in outflows coincided with a price rebound across crypto markets. Bitcoin had fallen to a nearly 16-month low of $62,822 during last week’s sharp selloff. It has since recovered to around $70,500, according to CoinGecko data.
Currently, Bitcoin trades at $70,437. That’s down roughly 44% from its all-time high north of $126,000 set last October. That previous drop was triggered by forced liquidations and whale sales that started what some call a crypto winter.
Selling intensified last week, with Bitcoin posting its worst daily drop since November 2022. Bernstein analyst Gautam Chhugani called the current price action “a mere crisis of confidence.” He said, “Nothing broke, no skeletons will show up.”
Chhugani made an interesting point about spot ETFs. They’ve seen only a 7% outflow compared with a 50% correction in Bitcoin prices during last week’s sell-off. That suggests maybe the ETF structure is holding up better than the underlying asset.
Broader Market Context and Contradictions
Despite the slowdown in outflows, sustained withdrawals pushed total crypto fund assets under management down to $129.8 billion. That’s the lowest level since March 2025, when the Trump administration announced a new round of tariffs.
Here’s where things get contradictory. Exchange-traded product trading volumes hit a record $63.1 billion last week. This increase stands in stark contrast with spot crypto market trends. 10x Research noted that trading volumes during the recent crash were significantly lower than those seen in October. They suggested this indicates thinner liquidity and activity driven more by derivatives than broad market participation.
Looking ahead, 10x Research remains cautious. Their altcoin model has been bearish since mid-January, and they warn that most altcoins remain structurally weak. On prediction market Myriad, users assign just a 10% probability to an “alt season” occurring in the first quarter.
Mixed Sentiment and Long-Term Views
Sentiment toward Bitcoin is similarly mixed. Myriad users consider a 56% probability that Bitcoin’s next significant shift will be toward $55,000—not $84,000. 10x Research suggests any recovery below $91,000 would likely be a countertrend bounce.
More bearish voices persist. Bloomberg Intelligence strategist Mike McGlone reiterated that Bitcoin could eventually decline to $10,000. He cites pressure on highly speculative assets in a tightening environment.
Even so, long-term bulls aren’t backing down. CryptoMondays founder Lou Kerner reaffirmed his forecast, stating in the Quantum Economics blog that Bitcoin could hit $1 million by 2031.
Butterfill offered a final caution about short-term volatility. He noted that such massive price drops are often accompanied by fund defaults or stress events that have been largely invisible so far. It’s a reminder that in crypto markets, what you see on the surface might not tell the whole story.
