In a startling turn of events, cryptocurrency markets have witnessed a substantial outflow of $1.7 billion from major assets including Bitcoin (BTC), Ethereum (ETH), and XRP, signaling a potential shift in market sentiment. This decline follows a trend of decreasing corporate demand and rising macroeconomic uncertainty, compounded by geopolitical tensions involving the US and Iran.
According to a report from Coinshares, these outflows have resulted in a net withdrawal of $1 billion from cryptocurrency investment products since the beginning of the year, alongside a staggering reduction of $73 billion in assets under management (AuM) since their peak in October 2025.
The report highlights that the majority of the outflows were concentrated in Bitcoin, which saw exits totaling $1.32 billion. Meanwhile, Ethereum experienced withdrawals amounting to $308 million. Other notable altcoins such as Solana (SOL) and XRP faced outflows of $31.7 million and $43.7 million, respectively, reflecting a broader negative sentiment among market participants.
Interestingly, despite the overall trend of outflows, some investment products tied to precious metals have attracted inflows, with $15.5 million reported. This suggests a potential pivot among investors towards more stable asset classes amid market volatility.
Geographically, the United States reported the most significant outflows, totaling $1.65 billion, followed by Canada with $37.3 million and Sweden with $11.1 million. Conversely, Switzerland and Germany noted small inflows of $11 million and $4.3 million, respectively, indicating that while some regions are withdrawing, others are beginning to position themselves within the market.
As the cryptocurrency landscape continues to evolve, the implications of these shifts will be closely monitored by investors and analysts alike. The ongoing sell-offs, alongside the Federal Reserve”s increasingly hawkish stance, may signal the beginning of a bear market for Bitcoin and its peers.
