Crypto ETPs See $4.75B Outflow, Bitcoin Drops 3.5% Amid Bearish Sentiment

Bitcoin and other major cryptocurrencies are under sustained pressure as investor sentiment remains overwhelmingly bearish. Over the past four weeks, cryptocurrency exchange-traded products (ETPs) have experienced a total outflow of $4.75 billion, indicating a significant loss of confidence in the market. This trend is particularly pronounced in the United States, where investors have withdrawn $922 million from crypto funds, reflecting broader economic concerns and uncertainty.

James Butterfill, Head of Research at CoinShares, noted that while the pace of outflows has slowed, the overall sentiment remains bearish. This cautious approach is echoed by Valentin Fournier, an analyst, who pointed out that the outflows have led to a 10% decrease in total cumulative inflows over the past month. This shift in sentiment is attributed to macroeconomic factors, including global trade tensions and local economic indicators, which have complicated the market landscape.

The recent downturn in the cryptocurrency market is part of a broader trend that has seen total withdrawals reach $4.75 billion over the past four weeks. This significant outflow highlights investor apprehension about the asset class, particularly when compared to the last week of February, which saw an extraordinary outflow of $2.9 billion. The market's volatility has led to a decrease in confidence among institutional investors, who are now more cautious about their crypto allocations.

Bitcoin and Ethereum prices have dipped, with Bitcoin falling below $83,000, reflecting a 3.5% decline over the last 24 hours, while Ethereum has recorded a similar downturn, trading slightly above $2,100. In contrast, traditional markets are displaying resilience, with pre-market trading indicating modest gains for the S&P 500 Index and Dow Jones Industrial Average. This juxtaposition underscores the complexity of investor sentiments across different asset classes.

The upcoming announcement from the Federal Reserve’s Open Markets Committee on inflation, scheduled for March 19, will be closely monitored by investors. The current unemployment rate of 4.1% suggests that the Federal Reserve faces difficult choices regarding economic growth and inflation management. Data from the CME FedWatch Tool suggests only a 3% likelihood of interest rates being lowered, adding to the uncertainty in the market.

The current landscape of the cryptocurrency market is marked by significant challenges, as evidenced by the recent trend of capital out