Crypto ETPs Lose $876M, Bitcoin Drives 85% Outflows

The cryptocurrency market has been experiencing significant turmoil, with exchange-traded products (ETPs) facing substantial outflows for the fourth consecutive week. The total outflows for the week amounted to $876 million, marking a slight decrease from the previous week's record-breaking $2.9 billion. Despite this reduction, the overall market sentiment remains bearish, with the total four-week loss for cryptocurrency ETPs reaching $4.75 billion. This prolonged period of outflows has led to a significant decline in total assets under management (AuM), which has dropped to $142 billion, the lowest level since November 2024.

Bitcoin ETPs have been the primary driver of these outflows, contributing $756 million to the total. This represents nearly 85% of the week's outflows, highlighting the significant impact of Bitcoin on the broader cryptocurrency market. Additionally, short Bitcoin ETPs saw increased outflows of $19.8 million, the highest since December 2024. This trend suggests that investors are not only reducing their exposure to Bitcoin but also positioning themselves for further declines in its value.

The decline in AuM has been driven by the four-week streak of outflows, with the bearish trend in Bitcoin's value being a significant contributing factor. This has led to a decrease in year-to-date inflows to $2.6 billion, further exacerbating the market's challenges. The situation is not limited to Bitcoin, as many altcoins, including Ethereum, Tron, Solana, XRP, Sui, and Aave, also experienced substantial outflows. Ethereum, the second-largest cryptocurrency, saw the highest outflows among altcoins, with $89 million leaving the market. Tron and Solana followed with $32 million and $16.4 million in outflows, respectively.

Looking ahead, the market's direction will be influenced by key economic events, including upcoming inflation reports. The release of February's Consumer Price Index and the Producer Price Index (PPI) report could further impact the market's trajectory. If these reports show higher-than-expected inflation, risk markets, including cryptocurrencies, could face additional selloffs. The lack of a positive reaction to recent industry events, such as the crypto summit and US crypto reserve announcement, suggests that traders are awaiting stronger signals before committing to the