Bitcoin Dominates: $2.17B Flows, Reversal Signals

What to Know:

• Digital asset investment products experienced substantial inflows totaling $2.17 billion last week, driven primarily by Bitcoin, Ethereum, and XRP.
• Market sentiment shifted on Friday due to geopolitical tensions, trade tariff concerns, and uncertainty regarding the next US Fed Chair.
• XRP saw significant inflows, indicating continued investor interest despite regulatory uncertainties and broader market caution.

Digital asset investment products witnessed robust inflows last week, signaling strong initial investor confidence. However, a sudden reversal occurred on Friday, raising concerns about the sustainability of the early-week optimism. This shift highlights the crypto market’s sensitivity to broader economic and geopolitical factors.

Strong Inflows Led by Bitcoin

Last week, digital asset investment products attracted $2.17 billion, marking the highest weekly total since October 2025. Bitcoin dominated with inflows of $1.55 billion, underscoring its continued prominence as a leading crypto asset. Ethereum followed with $496 million, while XRP also saw significant interest, recording $69.5 million in inflows.

Altcoins Show Positive Momentum

Several altcoins experienced positive inflows, indicating a broader interest in the digital asset market. XRP products led altcoin gains with $45.5 million. Other notable inflows included Sui ($5.7 million), Lido ($3.7 million), and Hedera ($2.6 million). Litecoin and Chainlink also registered positive inflows, albeit smaller, at $2.3 million and $1.2 million, respectively. Multi-asset products, however, experienced outflows of $12.5 million.

Geographical Distribution of Investments

The United States led in fresh investments, drawing $2.05 billion. Germany and Switzerland also recorded solid gains, with $63.9 million and $41.6 million, respectively. Canada and the Netherlands saw inflows of $12.3 million and $6 million. France, Australia, Italy, and New Zealand registered smaller inflows. Conversely, Sweden experienced outflows of over $4 million, while Brazil saw $1 million exit the market.

Market Sentiment Reversal

The initial optimism faded on Friday, marked by substantial outflows of $378 million. This reversal coincided with rising diplomatic tensions, renewed trade tariff threats, and uncertainty surrounding the next US Fed Chair. Market experts suggest this shift reflects a broader risk-off behavior across digital assets, with investors potentially moving towards traditional safe-haven assets.

Implications for XRP and Market Liquidity

Despite the late-week downturn, XRP’s significant inflows highlight its resilience and continued investor interest. This positive sentiment could contribute to increased liquidity for XRP, potentially supporting its market stability and growth. However, the broader market caution underscores the need for vigilance, as geopolitical and macroeconomic factors can significantly impact digital asset performance.

Conclusion

The digital asset market experienced a week of contrasting fortunes, with strong early inflows followed by a sentiment reversal. While Bitcoin, Ethereum, and XRP demonstrated robust appeal, the market remains susceptible to external economic and political pressures. Investors should remain cautious and monitor these factors closely to navigate the evolving landscape.

Related: XRP Death Cross Signals Price Drop

Source: Original article