Bitcoin Leads $240M Crypto Outflow as Investors React to Tariff Tensions

• Last week, digital assets saw a total outflow of $240 million, primarily driven by Bitcoin and Ethereum.
• Despite the outflows, the total assets under management in digital asset products remained remarkably stable with a slight increase of 0.8%.
• Blockchain equities gained investor attention, with inflows suggesting that the recent price weakness could present buying opportunities.

Last week, digital asset investment products experienced a substantial outflow of $240 million. This decline is believed to be linked to recent news surrounding US trade tariffs, which raised concerns about potential economic slowdowns.

As investors reacted to the uncertainty, Bitcoin suffered the biggest hit from the outflows, with a massive $207 million withdrawal. Ethereum lost a sizeable portion of the outflows, at $37.7 million. Smaller alternative cryptocurrencies such as Solana and Sui lost smaller amounts of $1.8 million and $4.7 million, respectively.

Surprisingly, smaller tokens such as Ton Coin defied the trend with modest inflows of $1.1 million, at least confirming that investors are seeing value in lesser-known cryptocurrencies.

Cautious Sentiment Amid Challenges

These outflows reflect a general sentiment among cautious investors expecting possible macro headwinds. Even as outflows took place, overall digital asset product assets under management were very resilient.

Total assets rose 0.8% to $132.6 billion as inflows fell. This contrasted with other asset classes, particularly global equities. The MSCI World index, for instance, dipped 8.5% over the same time, putting digital asset performance into relative perspective during the decline in the overall market.

The regional breakdown of the outflows indicated a general negative sentiment. The greatest outflows came from the United States at $210 million, followed by $17.7 million from Germany.

Bitcoin and Market Reactions to US Tariff Risks

This is reflective of the kind of reaction global markets are having to the potential economic risk of the US tariff fiasco. Canadian investors responded differently, though. They seized the recent dip in the market as a chance to buy digital assets at a discounted price, and invested $4.8 million.

While digital asset investment product investment as a whole fell, blockchain equities rose. Blockchain equities reported inflows for the second consecutive week, totaling $8 million.

This growth is driven by optimism on the part of investors. Many are also regarding recent declines in prices as a time to buy, a sign of confidence in the long-term outlook of blockchain technology. Even with cautious market sentiment, the resilience of blockchain equities has given confidence to investors who want to diversify their portfolios in uncertain times.

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