🧐 Report: Cryptocurrency Market Experiences Outflow for 4 Consecutive Weeks, Bitcoin Leads the Decline, Investor Sentiment Remains Low

CoinShares released its latest cryptocurrency investment flow report this week, indicating that digital asset investment products have experienced outflows for the fourth consecutive week, totaling $876 million. Although the outflow rate has slowed compared to previous weeks, investor sentiment remains generally bearish.

Over the past four weeks, cumulative outflows have reached $4.75 billion, leaving total inflows for the year at only $2.6 billion. The CoinShares report notes that due to the dual effects of price declines and continued fund outflows, total assets under management (AuM) have decreased by $39 billion from their peak, down to $142 billion, the lowest level since mid-November 2024.

Notably, U.S. investors have shown the strongest bearish sentiment, withdrawing $922 million that week. However, investors in other regions seem to view this as a buying opportunity. Switzerland saw inflows of $23 million, while Canada and Germany saw inflows of $14.7 million and $13.3 million, respectively.

In terms of specific assets, Bitcoin saw the highest outflow, with $756 million leaving in one week. Among these, funds for shorting Bitcoin products also experienced outflows reaching $19.8 million, the highest level since December 2024. Altcoins were not spared either, with Ethereum seeing an outflow of $89.2 million, and Tron and Aave seeing outflows of $32 million and $2.4 million, respectively. However, some altcoins performed well, with Solana attracting $16.4 million, XRP gaining $5.6 million, and Sui also bringing in $2.7 million.

Overall, the cryptocurrency market is not performing well. According to CoinGecko data, the global cryptocurrency market capitalization plummeted from $3.26 trillion to $2.81 trillion in the past week, a decrease of $450 billion. This is primarily due to Bitcoin's unstable upward momentum, leading to a larger decline in price than increases.

As of Tuesday, Bitcoin has dropped nearly 28% from its historical high of $109,000 in January. Other major cryptocurrencies, such as Ethereum and Solana, have also followed Bitcoin's decline, dropping 50% and 60%, respectively.

In summary, the cryptocurrency market is currently in a low period. How long do you think this sluggish state will last? Leave a comment in the discussion section!