Bitcoin News Today: Digital Assets Lose $2B Amid Fed Doubts, Whales Stockpile for 2026

Digital asset investment products recorded $2 billion in outflows last week, marking the largest weekly exodus since February and extending a three-week rout that has drained $3.2 billion from the sector. The sell-off, driven by U.S. monetary policy uncertainty and aggressive whale selling, has pushed total assets under management in digital asset exchange-traded products (ETPs) down 27% from their early-October peak of $264 billion to down 27% from $264 billion to $191 billion. Bitcoin and Ethereum products bore the brunt of the decline, with Bitcoin ETPs losing $1.38 billion last week alone, while Ethereum's outflows represented 4% of its ETP market.

Analysts attribute the downturn to a combination of factors. James Butterfill, research lead at CoinShares, cited "monetary policy uncertainty and crypto-native whale sellers" as the primary drivers according to CoinShares research. The Federal Reserve's hawkish stance, including resistance to rate cuts and a focus on inflation risks, has spooked investors. U.S. outflows dominated the exodus, with $1.97 billion leaving domestic products, while Germany bucked the trend by attracting $13.2 million in inflows as local investors viewed the correction as a buying opportunity.

The sell-off extended to altcoins, with XRP reversing prior gains to post $15.5 million in outflows and Solana shedding $8.3 million according to crypto news reports. Short-Bitcoin ETPs, however, saw renewed interest as traders hedged against further downside according to market analysis. Meanwhile, multi-asset funds attracted $69 million in inflows as investors sought diversification amid the turmoil according to recent data.

On the demand side, Bitcoin whale activity has drawn attention. Large holders accumulated over 375,000 BTC in the past 30 days, with long-term addresses doubling to 262,000 in two months according to Bitcoin tracking data. Analysts suggest this accumulation could signal a bullish setup for 2026, particularly if institutional inflows resume. U.S. spot Bitcoin ETFs, including BlackRock's IBIT, saw a $240 million net inflow in late October, breaking a streak of outflows.

The market's next moves may hinge on macroeconomic clarity. A shift in Fed policy or resolution of political gridlock could reignite demand, while prolonged uncertainty risks further outflows. For now, the sector's focus remains on stabilizing supply chains and demonstrating the utility of blockchain infrastructure amid volatile conditions.