Weak U.S. sentiment drives fourth straight week of crypto outflows
CoinShares reports digital asset investment products saw outflows for a fourth consecutive week, with $173 million withdrawn in the latest week and $3.74 billion across the past month. Trading volume sharply declined to $27 billion from $63 billion the prior week, signalling reduced activity and thinner liquidity. The United States led the selling with $403 million in outflows; non-U.S. markets recorded inflows led by Germany ($115m), Canada ($46.3m) and Switzerland ($36.8m). Bitcoin products recorded the largest redemptions ($133m) and traded near $68,900 (-~1.8% day), while Ethereum funds lost $85.1m and ETH traded near $1,977 (down ~4%). Some altcoins attracted fresh capital: XRP $33.4m, SOL $31m and LINK modest inflows. CoinShares notes short-Bitcoin products also saw outflows in recent weeks, a pattern sometimes observed near local market lows. The CoinMarketCap Altcoin Season Index remains low at 31/100, indicating Bitcoin-dominant conditions. For traders: falling volumes and lower liquidity increase price sensitivity to large flows and sell-offs; elevated U.S. outflows point to institutional caution and potential near-term downside pressure on BTC and ETH holdings, while regional altcoin inflows (XRP, SOL, LINK) may offer tactical opportunities within a range-bound Bitcoin. Monitor macroeconomic data and fund flow updates for direction — short-Bitcoin outflows may signal positioning shifts but are not definitive buy signals.
Bearish
The combined reports point to sustained net outflows and a sharp drop in trading volume, which reduce market liquidity and increase price sensitivity to large sells. U.S. funds were the primary source of redemptions, removing $403m in the latest week and contributing to $3.74bn monthly outflows; Bitcoin and Ethereum products led redemptions (BTC $133m, ETH $85.1m). Lower liquidity and continued institutional caution increase the likelihood of near-term downside pressure on BTC and ETH prices. Although some altcoins (XRP, SOL, LINK) saw inflows that may create short-term trading opportunities, these are smaller in scale and occur against a Bitcoin-dominant backdrop (Altcoin Season Index 31/100). Short-Bitcoin product outflows can indicate positioning shifts near local lows but are not reliable buy signals on their own. Overall, the net effect is bearish for the major coins mentioned, especially in the short term; longer-term direction will depend on whether outflows abate and on macroeconomic catalysts.