- Outflows from Bitcoin and Ethereum set crypto investments back a mile in the past week.
- XRP showed resilience as President Donald Trump temporarily halted reciprocal tariffs.
Bitcoin (BTC) and Ethereum (ETH) are currently in the spotlight for recording the highest outflows amongst other digital asset investment products. Last week, the crypto market witnessed one of the biggest crashes in recent times, with outflows reaching $795 million.
Pause in BTC and ETH Inflows
The most affected products were those Exchange-Traded Products (ETPs) focused on the leading cryptocurrencies, Bitcoin and Ethereum. According to CoinShares, Bitcoin investment products witnessed outflows of $751 million this past week. Short-Bitcoin suffered the same fate, with outflows of $4.6 million.
However, Year-to-Date (YTD) inflows remain robust at $545 million. The negative sentiment about Bitcoin investment products has spread across several countries and providers. The United States saw the highest weekly flows by country, reaching $763 million, followed by Switzerland, which had $11.9 million.
The second-largest cryptocurrency, Ethereum, saw outflows totaling $37.6 million last week. Other altcoins like Solana (SOL), Aave (AAVE), and Sui (SUI) were not left out of the bearish trend. These cryptocurrencies experienced outflows of $5.1 million, $0.78 million, and $0.58 million, respectively.
However, XRP, a leading market altcoin, led inflows with $3.5 million. Smaller altcoins, including Ondo, Algorand, and Avalanche, also experienced a similar outcome. These digital assets saw minor inflows of $0.46 million, $0.25 million, and $0.25 million, respectively.
From a broader perspective, digital asset investment products were in a bearish phase over the past week. Last week marked the third consecutive week of consistent outflows from digital asset funds. The $795 million brings the total outflows since February to $7.2 billion, nearly erasing YTD inflows.
CoinShares attributed last week’s negative sentiments to US President Donald Trump’s recent trade wars. YTD inflows now stand at just $165 million.
Crypto Markets Regaining Momentum
However, the crypto market regained momentum towards the week ending following Trump’s temporary tariff pause to about 75 countries. In a recent update we covered, BlackRock CEO Larry Fink said Trump’s tariffs could trigger a market correction of up to 20%. He, however, called this condition an opportunity.
Accordingly, the late-week price rebound helped lift total Assets Under Management (AuM) to $130 billion. This increase represents an 8% growth from the lowest point on April 8 (the lowest since early November 2024).
As of this article’s writing, Bitcoin’s price was trading at $84,974, up by 0.84% in the last 24 hours. The market capitalization has also increased by 0.9% to $1.6 trillion. According to technical analysis, the Keltner channel’s upper limit shows that Bitcoin’s next crucial resistance level is around $88,000.
Likewise, the price of Ethereum soared by 4.48% over the previous day to $1,673. As the rising trading volume indicates, ethereum investors continue to increase their activity. This metric increased by 30.6% to $17.6 billion.
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