Ethereum Withdrawal Sentiment Continues, with a 24-hour CEX Net Outflow of 44,000 ETH

Ethereum (ETH) continues to see net outflows from centralized exchanges (CEX), with 44,000 ETH withdrawn in the last 24 hours. This trend aligns with broader investor sentiment in the crypto market, which has shown mixed behavior in recent weeks. The movement indicates a shift in positioning by traders and investors, either to over-the-counter or decentralized venues.

Crypto investment products recorded $454 million in outflows last week, according to European crypto asset manager CoinShares. This comes after a four-day streak of withdrawals erased much of the $1.5 billion in inflows seen in the first two trading days of 2026. CoinShares attributed the reversal in sentiment to investor concerns about the fading chances of a Federal Reserve interest rate cut in March.

Bitcoin (BTC) was the largest contributor to the outflows, with $405 million leaving related ETPs. While short-BTC products saw smaller outflows, the overall sentiment for the asset remains mixed. In contrast, altcoin funds for tokens like XRP, Solana, and Sui posted inflows, reflecting continued support for certain alternative cryptocurrencies.

Why Did This Happen?

Investor sentiment appears to be heavily influenced by macroeconomic data and expectations for U.S. monetary policy. Recent releases have raised doubts about the likelihood of a Fed rate cut, leading to a pullback in risk assets. CoinShares' head of research, James Butterfill, noted that the market is reacting to the diminishing probability of supportive policy.

The U.S. emerged as the only major market with negative flows, totaling $569 million in outflows. In contrast, Germany, Canada, and Switzerland reported inflows of $59 million, $25 million, and $21 million, respectively. This disparity highlights a regional divergence in crypto market activity.

What Are Analysts Watching Next?

Exodus Movement Inc (EXOD) reported Q3 2025 revenue of $30.3 million, up 51% year-over-year and exceeding the $29.5 million forecast. The company also noted a 82% increase in swap volume to $1.75 billion and a 20% rise in funded users to 1.8 million. Despite a 6% drop in monthly active users, Exodus continues to grow its digital and liquid asset reserves, which totaled $315 million at the end of Q3.

Exodus has also acquired Grateful, a payment platform, to expand its capabilities in Latin America. The company plans to launch operations in Argentina and Uruguay in the coming months. Analysts will be watching if these strategic moves translate into sustained growth and whether the company can diversify beyond exchange-related revenue.

The SEC's recent decision to pause or dismiss several high-profile crypto enforcement actions has also drawn scrutiny from lawmakers. House Democrats accused the agency of walking away from cases involving major exchanges and platforms, despite having previously secured favorable court rulings. The lawmakers raised concerns about potential conflicts of interest, citing significant industry donations to President Trump and alleged connections to entities linked to the Chinese Communist Party.

Regulatory clarity remains a key issue for the industry. The stalled CLARITY Act, a proposed framework for crypto markets, is seen by some analysts as a positive development due to the potential overreach in the current version. Coinbase, a major crypto exchange, has publicly raised concerns about the bill's impact on DeFi and tokenized assets. The absence of a finalized regulatory framework leaves uncertainty for investors and market participants.