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- Digital funds faced the heaviest weekly exits since November 2025.
- US investors led the selling while Europe and Canada bought dips.
- Bitcoin and Ethereum weakened while Solana attracted fresh capital.
Digital assetand crypto investment products suffered heavy withdrawals last week as market confidence weakened across major assets. Total outflows reached US$1.73bn. This marked the largest weekly exit since mid November 2025.
Investors were influenced by the drop in prices and the change in macroeconomic indicators. The anticipation of interest rate cuts in the near term continued to diminish. Risk appetite weakened in the global financial market. Digital currencies did not benefit from the hedge against inflation theme.
Selling pressure has been strong, with negative momentum building up. The overall sentiment has been consistent with risk-off rather than asset-specific risk. Investors have been withdrawing after weeks of choppy trading. The weakness in prices has been a concern.
Funds focused on the top digital currencies have been experiencing steady redemptions. Portfolio managers have been focused on capital preservation. Volatility has been a concern. The overall tone has been consistent with previous downturns during the tightening phase.
Policy Uncertainty Drives Institutional Selling
Regional figures showed a marked contrast in the behavior of crypto investors. The United States reported a loss of nearly US$1.8 billion. This accounted for the majority of the global figures. Institutional crypto products reported consistent selling through the week. Investors from the US reacted quickly to the policy-related uncertainty.
Views on rates rising higher and longer pressured growth assets. Digital products felt the pressure first. Other regions reported varying trends. Sweden reported a loss of US$11.1 million. This was followed by the Netherlands, with investors pulling US$4.4 million from the markets.
However, several markets took the price decline as a chance to accumulate positions. The Swiss markets reported a gain of US$32.5 million. This was followed by Canada, with investors injecting US$33.5 million. Germany reported a gain of US$19.1 million. These reported gains showed that investors were choosing to invest, but this was not a reflection of overall optimism. Investors were accumulating positions in the long term.
Bitcoin products reported a loss of US$1.09 billion. This is the largest loss reported since mid-November 2025. The selling pressure on the asset remained strong after the October price crash. The asset’s sentiment did not improve. Investors reported a gain of US$0.5 million in short Bitcoin products. This showed that investors were continuing to defend their positions. Ethereum reported similar trends.
Investors Cut Exposure Across Major Crypto Assets
Products associated with Ether experienced an outflow of US$630m. There were also withdrawals from XRP, which were worth US$18.2m. This confirmed that investors were bearish about all major assets.
It is interesting to note that Solana broke the trend. Products associated with this network experienced an inflow of US$17.1m. There were also inflows of US$4.6m from products associated with Binance. Chainlink experienced an inflow of US$3.8m.
It is interesting to note that investors are being selective with conviction, given that they are waiting for clearer signs of direction. This trend indicates that investors are being cautious with regards to a fragile recovery. Until then, they will be patient with regards to restraint. It is interesting to note that allocation strategies are being dictated by discipline.
Risk control is dominant, given that investors are waiting for signs of stability from the markets. Investors may gain confidence once volumes normalize, given that volatility will be out of the way. Digital funds are characterized by restraint, patience, and selectivity, especially with regards to regions.
Related Reading: Metaplanet Lifts Bitcoin Income Forecast to ¥8.6B After Strong Q4 Results
