Bitcoin Withdrawal Momentum Continues with 24-Hour CEX Net Outflow of 347.51 BTC

Bitcoin and other cryptocurrencies saw significant net outflows during the first week of 2026, according to recent data from European crypto asset manager CoinShares. Investors withdrew $454 million from crypto exchange-traded products (ETPs) over the course of the week, marking a reversal from earlier inflows in the new year.

The outflows were primarily attributed to shifting investor sentiment, with concerns over the likelihood of a Federal Reserve interest rate cut in March playing a key role. Recent macroeconomic data has led to a reassessment of market expectations, contributing to a pullback in capital from digital assets.

Bitcoin, the largest cryptocurrency by market capitalization, led the outflows with $405 million in net withdrawals. Short-BTC funds saw minor outflows of $9 million, while funds focused on alternative cryptocurrencies saw mixed results. Assets such as XRP, Solana, and Sui continued to attract inflows totaling $46 million, $33 million, and $8 million respectively.

Why Did This Happen?

The shift in sentiment is largely linked to macroeconomic developments that have reduced the perceived likelihood of a Fed rate cut in March. This has led to a recalibration of risk tolerance among crypto investors, particularly in light of Bitcoin's strong performance in the early days of 2026.

James Butterfill, CoinShares' head of research, noted that the outflows reflect investor concerns about the broader macroeconomic environment. The diminishing prospects for a rate cut have led to increased uncertainty about the trajectory of risk assets, including digital currencies.

How Did Markets Respond?

While the week's outflows represent a setback, the month-to-date inflows for January 2026 remained positive at $229 million. This suggests that while investor sentiment has cooled, the long-term trend remains supportive of the crypto asset class.

Bitcoin's outflows were mirrored by a $116 million outflow from Ethereum (ETH) funds, while multi-asset altcoin products also posted combined outflows of $21 million. The mixed performance underscores the diverging trends among different segments of the crypto market.

What Analysts Are Watching

The geographic breakdown of the outflows reveals a significant regional disparity. The United States was the only market to post negative flows, with $569 million in outflows. In contrast, countries such as Germany, Canada, and Switzerland saw inflows of $59 million, $25 million, and $21 million, respectively.

This divergence suggests that global investor behavior is not uniform, with certain markets continuing to show strong demand for crypto ETPs. Analysts will be watching to see whether the U.S. outflows persist or reverse in response to further macroeconomic developments.

The largest contributors to the inflows were BlackRock's iShares products and Profunds Group, which attracted $181 million and $180 million respectively. Meanwhile, Fidelity Investments and Grayscale Investments posted the largest outflows, with $454 million and $360 million, respectively.

By the end of the week, crypto ETP issuers held $181.9 billion in assets under management, a slight increase from the previous week. This indicates that despite the outflows, the overall growth of the crypto ETP industry continues.