Crypto investment products reversed course last week after five consecutive weeks of inflows, recording 414 million dollars in outflows. Most of this came from investors in the United States. According to CoinShares, rising caution among investors is being driven by the Iran conflict and increasing inflation concerns. Expectations for the June FOMC meeting have also changed, with markets shifting from anticipating rate cuts to considering possible rate hikes.
This shift in sentiment has reduced total assets under management to 129 billion dollars, returning to levels last seen in early February and around April 2025 during Trump’s tariff rollout.
Ethereum Records the Largest Losses
Ethereum experienced the biggest decline, with 222 million dollars leaving the asset, possibly linked to recent developments surrounding the Clarity Act. This brings its total losses for the year to 273 million dollars, making it the weakest performer among major digital assets.
Bitcoin also saw 194 million dollars in outflows during the same period, though it still maintains a positive net inflow of 964 million dollars for the year. Short Bitcoin products attracted an additional 4 million dollars.
Solana recorded withdrawals of 12.3 million dollars, while Sui saw a smaller decline of 0.4 million dollars. Multi asset investment products lost 4.4 million dollars.
In contrast, XRP stood out by attracting 15.8 million dollars in inflows. Chainlink and Stellar also posted modest gains of 0.2 million dollars each.
Regional Trends Show Diverging Investor Behavior
Investor activity varied significantly by region. The United States led the outflows with 445 million dollars withdrawn. Switzerland, Sweden, and Hong Kong also recorded smaller outflows of 4 million, 3.5 million, and 0.6 million dollars respectively.
Meanwhile, Germany and Canada took advantage of lower prices, bringing in 21.2 million and 15.9 million dollars. Brazil also recorded a smaller inflow of 2.6 million dollars.
Weak Market Confidence Keeps Bitcoin Range Bound
The shift in investment flows reflects Bitcoin’s lack of strong momentum. QCP Capital expects Bitcoin to remain within the 65000 to 70000 dollar range in the near term.
The asset has been following a pattern of dipping toward the weekend as traders reduce positions, then recovering early in the week. Although it has held this range and even outperformed gold and major equities since the Iran conflict began, overall market sentiment remains fragile.
Bitcoin is now on track for a sixth consecutive monthly decline and its first three month losing streak of the year. Stronger investor confidence will likely be needed for any significant upward movement, especially after recent selling pressure following quarterly options expiry.
QCP Capital expects Bitcoin to trade sideways at least until early April, when an important United States deadline related to possible military action against Iran approaches.
Geopolitical Risks and Inflation Remain Key Factors
Rising geopolitical tensions and high oil prices could keep inflation elevated, which may influence Bitcoin’s long term appeal as an alternative store of value.#crypto#cryptonews https://coinsignals.net https://t.me/coinsignalpublic
