Bitcoin Bleeds $2.59B Amid Market Weakness and Regulatory Fears

Bitcoin Faces Significant Outflows Amid Broader Market Weakness and Regulatory Uncertainty

Bitcoin and other digital assets have experienced significant outflows in recent weeks, reflecting a broader market weakness and regulatory uncertainty. According to a report by CoinShares, digital asset investment products saw $2.9 billion in outflows last week, marking the third consecutive week of declines. Bitcoin was the hardest hit, with outflows totaling $2.59 billion, while Ethereum recorded its highest weekly outflows at $300 million.

The crypto market is facing unprecedented challenges with record outflows amidst bearish sentiment. The latest CoinShares report ascribes the negative flows to weakening sentiment across the crypto market, citing factors such as the recent Bybit hack, a more hawkish stance from the Federal Reserve, and broader macroeconomic concerns surrounding inflation. The hack, which resulted in millions of dollars stolen, has shaken investor confidence and reinforced fears over security vulnerabilities in the crypto space. Additionally, the Federal Reserve’s latest comments indicated a cautious outlook on inflation and the US GDP, leading to broader market uncertainty and a decline in risk appetite.

Despite the overall negative sentiment, some digital assets saw inflows. Sui emerged as the best performer, attracting $15.5 million, while XRP followed with $5 million in inflows. These gains suggest that while the broader market is under pressure, certain projects continue to garner investor interest. For XRP, the sentiment remains bullish, steered by increasing anticipation of a US SEC decision on an XRP ETF and the possibility of being included in Trump’s crypto reserve in the US.

The latest round of outflows follows a concerning trend that developed over the past few months. The previous week saw crypto outflows of $508 million, further exacerbating investor fears. Prior to that, the Federal Reserve’s hawkish rhetoric and concerning Consumer Price Index (CPI) data had triggered the first major crypto outflows of 2025, with $415 million exiting the market. This series of outflows has led some analysts to point to macroeconomic factors as the primary driver of the selloff, with investor sentiment still showing fear.

As of this writing, Bitcoin was trading for $93,095, up by over 8% since Monday’s session opened. In summary, the ongoing outflows from the crypto market signal