Tuesday, January, 21, 2025

Crypto Outflows Hit US$288M as Bitcoin Leads Decline Amid Lowest Trading Volumes

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Anny Sam

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  • Digital asset products recorded US$288 million in outflows, marking the 5th consecutive week of declines.
  • Bitcoin led outflows at US$215 million, while short-Bitcoin products drew renewed investor interest.
  • Regional trends diverged: the US saw heavy outflows, while Europe and Canada experienced modest inflows.

Crypto digital asset investment products faced another week of withdrawals. Investors pulled US$288 million, marking the 5th straight week of crypto outflows. This brought cumulative crypto outflows to US$4.0 billion.

While significant, this figure remains below last year’s US$6 billion over the same period. Trading volumes also weakened. Exchange-traded product activity fell to US$17 billion, the lowest since July 2025. The decline follows several weeks of record trading, showing that investor interest has cooled. Analysts see this as a sign of growing caution.

Regional Split in Crypto Market Sentiment

Investor behavior differed across regions. The US led outflows, with investors removing US$347 million from digital asset products. Sentiment remained negative as market uncertainty persisted.

Europe and Canada offered a contrasting picture. Investors added US$59 million during the same period. Switzerland led inflows with US$19.5 million, followed by Canada at US$16.8 million and Germany at US$16.2 million.

These regions viewed recent price weakness as a buying opportunity. The split highlights a growing regional divergence in market sentiment. While US investors pull back, other markets are willing to increase exposure at lower prices.

Bitcoin drove most of the outflows. Investors withdrew US$215 million, reflecting broad caution. Short-Bitcoin products saw the largest inflows, totaling US$5.5 million. This suggests traders are positioning for potential short-term declines.

Altcoins See Minor Gains Amid Market Caution

Ethereum followed with US$36.5 million in outflows. Multi-asset products and Tron also faced pressure, shedding US$32.5 million and US$18.9 million respectively. Minor inflows were recorded in select altcoins.

XRP added US$3.5 million, Solana US$3.3 million, and Chainlink US$1.2 million. However, these gains were not enough to offset the overall net outflows in the market. Investors remain cautious.

Bitcoin remains the key influence on sentiment, and trading volumes signal a subdued market. Regional differences suggest pockets of optimism, but the overall trend points to continued caution and selective investment strategies.

Also Read: Strategy Buys 592 BTC for $39M as Accumulation Drive Expands

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