The crypto market continues to bleed as investment products logged a fourth consecutive week of outflows, with a significant $173 million withdrawal last week, according to CoinShares. This follows a $187 million outflow the previous week, bringing the total outflows over the past four weeks to approximately $3.8 billion. Total assets under management (AUM) have now dropped to about $133 billion, the lowest since April 2025.
Bitcoin Takes the Hit
Bitcoin ETPs were the primary contributors to the negative sentiment, recording $133.3 million in outflows, with AUM declining to around $106 billion. US spot Bitcoin exchange-traded funds (ETFs) saw an even more dramatic outflow of nearly $360 million last week, according to SoSoValue data. This trend is a stark contrast to the modest inflows seen in US spot Ether ETFs, which added $10 million.
Regional Divergence
James Butterfill, head of research at CoinShares, noted a significant divergence in sentiment between the US and other regions. While US crypto investment products saw a substantial $403 million in outflows, other regions recorded sizable inflows totaling $230 million. Germany, Canada, and Switzerland led the gains with inflows of $115 million, $46 million, and $37 million, respectively.
Alternatives Buck the Trend
Amid the widespread outflows, XRP and Solana ETPs emerged as bright spots, recording inflows of $33.4 million and $31 million, respectively. These inflows highlight the ongoing diversification in the crypto market, as investors seek alternative opportunities amid Bitcoin’s downturn.
Market Sentiment and Analyst Predictions
The market sentiment is further dampened by recent analyst predictions. Standard Chartered analysts officially lowered their 2026 Bitcoin target from $150,000 to $100,000, forecasting the crypto asset to drop to $50,000 before recovering. This pessimistic outlook adds to the broader market negativity and ongoing price weakness.
Looking Forward
The persistent outflows and market pessimism underscore the challenges facing the crypto industry. However, the regional divergence and the performance of alternative cryptocurrencies like XRP and Solana suggest that the market is not monolithic and that opportunities still exist for savvy investors. As the market continues to evolve, it will be crucial to monitor these trends and the broader economic factors influencing crypto sentiment.
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