Bitcoin Outflows Surge Amid U.S. Economic Uncertainty; XRP Altcoins Thrive

Generated by AI AgentCoin World
Monday, Feb 24, 2025 9:23 am ET1min read
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Bitcoin Experiences Significant Outflows Amid Economic Uncertainty While Altcoins like XRP Show Resilience

Bitcoin faced significant challenges last week, highlighting rising investor caution amidst ongoing economic uncertainty in the U.S. Recent market data indicates a striking $571 million in outflows for Bitcoin, while altcoins like XRP thrive under speculative optimism.

The crypto market observed substantial outflows last week, especially from Bitcoin, as investors turn their attention to emerging altcoin opportunities amid U.S. economic uncertainty. According to a report from CoinShares, “The recent downturn arises as investors react to macroeconomic signals, especially following the presidential inauguration.”

The latest CoinShares report indicates that Bitcoin (BTC) bore the brunt of investor caution, seeing an outflow of $571 million. Some traders opted to increase their short positions on Bitcoin, leading to a modest inflow of $2.8 million for short-Bitcoin products. This trend follows a similar pattern observed in the previous week, where hawkish monetary policy discussions from the Federal Reserve, compounded by CPI data, triggered the first wave of crypto outflows in 2025. According to CoinShares’ findings, the latest flow dynamics appear as investors grapple with significant U.S. economic data.

“We believe investors are exercising caution following the U.S. Presidential inauguration and the consequent uncertainty around Trump’s trade tariffs, inflation, and monetary policy. This is also evident in trading turnover, which has fallen considerably from $22 billion two weeks ago to $13 billion last week,” an excerpt in the report read.

Regionally, the U.S. was predominantly responsible for these outflows, losing a staggering $560 million, which highlights existing concerns regarding the nation’s economic policies.

Interestingly, despite Bitcoin’s struggles, altcoins continued to display positive momentum. XRP led the charge with $38.3 million in inflows, pushing its total inflows since mid-November 2025 to $819 million. XRP’s resurgence can be attributed to rising anticipation surrounding a potential U.S. SEC (Securities and Exchange Commission) decision on an XRP ETF. With the deadline for the SEC to approve or reject certain ETF applications fast approaching, investor sentiment remains bullish for XRP.

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