Bitcoin Drops 10% as Crypto Products See $876M Outflow

Crypto investment products have experienced their fourth consecutive week of outflows, with investors withdrawing $876 million in the past week. This persistent outflow has brought the total outflows over the past month to $4.75 billion, indicating a bearish sentiment among investors. The year-to-date inflows have been significantly reduced to $2.6 billion, and the total assets under management (AUM) have decreased by $39 billion to $142 billion, marking the lowest level since mid-November 2024.

U.S. investors were the most active in selling, accounting for $922 million in outflows. In contrast, Switzerland, Canada, and Germany saw inflows of $23 million, $14.7 million, and $13.3 million, respectively, suggesting a more optimistic stance in these regions. Bitcoin remained the primary focus of sell-offs, with $756 million withdrawn last week. Short-Bitcoin products also saw outflows of $19.8 million, the highest since December 2024.

Other altcoins experienced similar pressure, with Ethereum losing $89 million, Tron $32 million, and Aave $2.4 million. However, some assets bucked the trend—Solana, XRP, and Sui recorded inflows of $16.4 million, $5.6 million, and $2.7 million, respectively. Meanwhile, blockchain equity exchange-traded products (ETPs) were not spared, witnessing $48 million in outflows as investor caution persisted.

Bitcoin’s recent price volatility has been closely tied to whale and shark activity, with large holders making significant moves over the past six months. According to Santiment, wallets holding 10 or more BTC mildly dumped their holdings from mid-February to early March, contributing to the recent market downturn. However, since March 3, these large stakeholders have reversed course, accumulating nearly 5,000 BTC back into their wallets. While prices have yet to reflect this buying activity, analysts suggest that if accumulation continues, the latter half of March could see a more positive market shift.

Ryan Lee, Chief Analyst at Bitget Research, predicts a critical week ahead for Bitcoin. He mentioned $70,000 to $75,000 as a key support