Cryptocurrency Outflows Hit $508 Million Amid Market Uncertainty

CoinShares reports that cryptocurrency investment products have experienced $508 million in weekly outflows.

Macroeconomic factors, such as trade tariffs and monetary policy adjustments, continue to weigh on the crypto market.

Bitcoin Corrects, Altcoins Suffer

Bitcoin has fallen back to the $95,000 range. The overall crypto market cap has declined to $3.14 trillion, marking a 1% drop. Top altcoins like Ether, Solana, and Dogecoin have also experienced losses.

Global Crypto Funds Witness Outflows

According to CoinShares, global crypto funds (e.g., iShares, Grayscale) have lost approximately $508 million this week. The report suggests that investor caution may have contributed to this decline.

Bitcoin Leads Outflows with $571 Million

Bitcoin leads the outflows with a significant $571 million. XRP, on the other hand, experienced weekly inflows of $38.3 million. However, outflows have predominated, totaling $924 million over the past two weeks.

US Dominates Outflows, Other Regions Show Sentiment

The United States has seen the most significant outflows, with $560 million. Conversely, Germany, Switzerland, Australia, and Sweden have displayed positive market sentiment.

Cautious Investors, Political Influence

CoinShares Head of Research James Butterfill attributes the outflows to investor caution following the US Presidential inauguration and uncertainties around trade tariffs and monetary policy.

US States Embrace Bitcoin, Trump's Policies Impact Market

Despite US states introducing bills to incorporate Bitcoin into their treasuries, Trump's tariffs and delayed evaluation of a strategic Bitcoin reserve continue to cast a shadow over the market.

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