Digital asset investment products recorded outflows of $1.73 billion, marking the biggest weekly exit since mid November 2025, according to CoinShares. The scale of the withdrawals suggests bearish sentiment is deepening, echoing patterns seen during previous market downturns.
CoinShares attributed the pullback to weak price performance, fading hopes for near term interest rate cuts, and growing frustration that crypto has failed to act as a hedge against currency debasement. The firm noted that market sentiment has yet to recover from the sharp selloff on October 10, 2025.
Bitcoin Drives the Decline
Bitcoin funds led the exodus, with $1.09 billion withdrawn over the past week, the largest outflow since November 2025. Short Bitcoin products saw only modest inflows of $0.5 million, indicating caution rather than strong conviction on the downside.
Selling pressure extended across major assets. Ethereum funds lost $630 million, XRP saw $18.2 million in outflows, and Sui recorded $6 million. Solana stood out as an exception, attracting $17.1 million in inflows. Smaller gains were also seen in Binance related products, Chainlink, and Litecoin.
Regional Flows Show Sharp Divide
The United States accounted for the bulk of withdrawals, with $1.79 billion leaving crypto funds in a single week. Sweden and the Netherlands followed with $11.1 million and $4.4 million in outflows, while Hong Kong saw $2.6 million exit. Smaller withdrawals were reported in Brazil, France, and Italy.
In contrast, Canada recorded $33.5 million in inflows, Switzerland added $32.5 million, and Germany brought in $19.1 million, highlighting diverging regional sentiment.
Risk Off Mood Takes Hold
Bitcoin is currently trading just above $88,000 but remains under heavy pressure. Mercuryo co founder and CEO Petr Kozyakov said markets are firmly in risk off mode, with capital flowing into traditional safe havens such as gold and silver amid rising geopolitical uncertainty.
Kozyakov added that both retail and institutional investors remain defensive. Areas that fueled speculation last year, particularly meme coins, have seen activity dry up, while institutional participation continues to retreat, reinforcing the broader bearish tone across crypto markets.
