Crypto Market Faces $1.687 Billion Outflows, Bitcoin Loses $5.4 Billion

The crypto market is currently experiencing a significant period of capital flight, with digital asset investment products facing a fifth consecutive week of outflows. This trend is driven by persistent bearish sentiment, with Bitcoin (BTC) being the most affected, as its price remains well below the $90,000 threshold.

According to the latest report, total crypto outflows have reached $1.687 billion, resulting in cumulative losses of $6.4 billion over this negative streak. This marks the 17th straight day of outflows, the longest unbroken period of capital withdrawals since 2015. Despite the sustained downturn, year-to-date (YTD) inflows remain positive at $912 million. However, the latest market correction and consistent investor withdrawals have led to a $48 billion decline in total assets under management (AuM) across digital asset investment products.

The US is the primary source of the ongoing crypto outflows, accounting for $1.16 billion in outflows, which represents approximately 93% of all outflows during this negative streak. In contrast, Germany experienced a modest inflow of $8 million, indicating regional variations in investor sentiment.

Bitcoin continues to bear the brunt of investor withdrawals, with an additional $978 million in outflows over the past week, bringing its five-week total to $5.4 billion. Meanwhile, short-Bitcoin positions also saw $3.6 million in outflows, indicating a general decrease in bearish bets against the pioneer crypto.

While most digital assets have declined, XRP continues to attract investment, recording an additional $1.8 million in inflows. This optimism likely stems from the hope of an imminent conclusion to the longstanding legal battle between Ripple and the US SEC (Securities and Exchange Commission) and the possibility that the SEC may reclassify XRP as a commodity.

One of the most striking developments during this market downturn was the near wipeout of assets under management at the Binance exchange. A key seed investor’s exit drained almost all of Binance’s AuM, leaving the exchange with just $15 million in remaining AuM.

This sustained sell-off follows a weeks-long pattern of negative sentiment. The previous week, crypto outflows hit $876 million, with US investors leading the charge in market liquidations. Before that, outflows had already neared $3 billion, driven by weak investor sentiment and rising market fears.

The persistent crypto outflows and declining AuM figures suggest that confidence in the crypto sector is yet to recover. However, pockets of resilience, such as XRP’s inflows and minor gains in Germany, indicate that investor appetite has not vanished entirely.