Crypto Markets Bleed $3B in Third Straight Week of Outflows

Crypto markets are grappling with a significant outflow of funds, with investors pulling out nearly $3 billion over the past week. This trend marks the third consecutive week of capital exiting the crypto sector, reversing a 19-week inflow streak that saw $29 billion pour into the market.

The latest CoinShares report attributes the negative flows to a weakening sentiment across the crypto market. Factors contributing to the outflows include the recent Bybit hack, a more hawkish stance from the Federal Reserve, and broader macroeconomic concerns. The hack, which resulted in millions of dollars stolen, has shaken investor confidence and reinforced fears over security vulnerabilities in the crypto space. Additionally, the Federal Reserve's latest comments signaled a cautious outlook on inflation and the US GDP, leading to broader market uncertainty and a decline in risk appetite.

Bitcoin, the largest cryptocurrency by market capitalization, was the hardest hit by the bearish sentiment, experiencing outflows of $2.59 billion last week. Ethereum also suffered, recording its highest weekly outflows at $300 million. Other major altcoins followed suit, with Solana experiencing outflows of $7.4 million. Despite the overall negative sentiment, short Bitcoin positions saw minor inflows totaling $2.3 million, suggesting some investors are positioning themselves for further downside.

While the broader market is under pressure, certain digital assets continue to attract investor interest. Sui emerged as the best performer, attracting $15.5 million in inflows, while XRP followed with $5 million. The sentiment for XRP remains bullish, steered by increasing anticipation of a US SEC (Securities and Exchange Commission) decision on an XRP ETF. The deadline for the SEC to approve or reject certain ETF applications has begun, and investors remain hopeful that XRP will gain regulatory clarity. Including XRP in Trump's crypto reserve in the US could enhance this sentiment.

The latest round of outflows follows a concerning trend developed over the past few months. The previous week saw crypto outflows of $508 million, further exacerbating investor fears. Before that, the Federal Reserve's hawkish rhetoric and concerning Consumer Price Index (CPI) data had already triggered the first major crypto outflows of 2025, with $415 million exiting the market. This series led some analysts to point to macroeconomic factors as the primary driver of