TL;DR
Investor sentiment toward digital asset products has soured sharply, with the largest outflows since mid-November 2025 underscoring a renewed wave of caution. CoinShares data revealed $1.73 billion in withdrawals last week, a figure that mirrors the bearish mood gripping markets amid fading expectations for interest rate cuts and disappointment that cryptocurrencies have not yet benefited from the debasement trade.
The United States dominated the exodus, recording nearly $1.8 billion in outflows, reflecting heightened investor anxiety over monetary policy and macroeconomic volatility. Sweden and the Netherlands followed with smaller withdrawals of $11.1 million and $4.4 million, respectively. In contrast, Switzerland, Germany, and Canada saw opportunity in weakness, registering inflows of $32.5 million, $19.1m, and $33.5 million. This divergence highlights how regional investors are interpreting the same macro backdrop differently, with North America leaning defensive while parts of Europe and Canada remain opportunistic.
Bitcoin bore the brunt of the retreat, with $1.09 billion in outflows, the largest since November 2025. The scale of withdrawals underscores how fragile sentiment remains following the October 2025 crash. Interestingly, short-Bitcoin products attracted $500K in inflows, suggesting some investors are positioning for further downside. This dynamic illustrates the persistence of bearish conviction, even as Bitcoin continues to anchor institutional portfolios.
Ethereum and XRP were not spared, recording $630 million and $18.2 million in outflows, respectively. The breadth of withdrawals signals that negative sentiment is not confined to Bitcoin but extends across major assets. Yet, Solana bucked the trend with $17.1 million in inflows, while Binance and Chainlink saw modest gains of $4.6 million and $3.8 million. These selective inflows suggest investors are still willing to back projects perceived as resilient or innovative, even in a risk-off environment.
The broader context remains defined by dwindling expectations for near-term interest rate cuts. Recent macroeconomic data have tempered hopes that the Federal Reserve will ease policy in early 2026, reinforcing risk-off behavior across digital assets. The combination of negative price momentum and lack of participation in the debasement trade has left investors cautious. Unless macro conditions shift, digital asset products may continue to face headwinds, with inflows limited to select altcoins and opportunistic regions.
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