What to Know:
- Digital asset investment products experienced significant outflows last week, primarily driven by Bitcoin and Ethereum.
- Despite the overall negative sentiment, some altcoins like Sui, Litecoin, and Cardano saw modest inflows, indicating selective interest.
- Market experts suggest the current correction in Bitcoin might be in its later stages, with a cautious but constructive outlook prevailing.
The crypto market experienced substantial outflows from digital asset investment products, reflecting broader market uncertainty. Bitcoin, in particular, faced significant selling pressure, contributing to an overall negative trend. However, some altcoins demonstrated resilience, attracting inflows despite the prevailing bearish sentiment.
Digital asset investment products saw $2 billion exit the market last week, marking the largest outflows since February. CoinShares attributed this downturn to ongoing monetary policy uncertainty and selling activity from major crypto whales, further compounded by falling prices that have decreased total assets under management in digital-asset ETPs by nearly 27% since early October.
Bitcoin was the hardest hit, with $1.38 billion in outflows, while short Bitcoin products attracted $9.1 million in inflows, suggesting some traders are positioning for further downside. Ethereum also suffered, witnessing $689 million in outflows. Solana and XRP experienced outflows of $8.3 million and $15.5 million, respectively.
Despite the negativity, multi-asset investment products drew $31.2 million in new capital, indicating a shift towards diversified products amid cautious market conditions. While most regions saw outflows, Germany stood out by attracting $13.2 million in inflows, showcasing regional differences in market sentiment.
“Positioning has lightened, but we’re not seeing panic. The rotation into ecosystems like Solana shows that capital is still active, just more selective. This phase is about rebuilding pressure, not chasing momentum. If anything, the current environment favours gradual accumulation on support rather than trying to time dramatic moves. The next impulse will likely come once ETF flows stabilise or new institutional buyers step back in.”
While challenges persist, some experts believe Bitcoin is in the later stages of its correction, supported by key support zones. The market is stabilizing, with recent bearish sentiment driven by ETF outflows and thinner liquidity, but the overall sentiment remains cautiously constructive, awaiting clearer macro signals and ETF flow stabilization.
Source: Original article
