Bitcoin Sees $1.38B in Outflows as Bearish Bets Rise, Ethereum Faces Even Deeper Losses

The digital asset market faced another wave of heavy outflows last week, with nearly $2 billion leaving investment products in what has become the sharpest pullback since early in the year. It marked the third straight week of withdrawals, pushing the cumulative total to more than $3.2 billion. Persistent uncertainty surrounding monetary policy and large-scale selling by major holders has added pressure to an already fragile market.

With prices sliding across the sector, total assets held in crypto investment products have fallen sharply, dropping roughly 27% from their early-October peak of $264 billion to around $191 billion.

Bitcoin took the brunt of the damage, losing $1.38 billion in outflows and extending its multi-week decline, which now represents around 2% of its total managed assets. At the same time, traders funneled fresh capital into bearish BTC-linked vehicles, signaling expectations of further downside. Over the past three weeks, these short products have accumulated more than $18 million in new inflows.

Ethereum fared even worse relative to its asset base, with $689 million leaving the market—about 4% of its total exposure. Other major networks also saw modest withdrawals, including Solana and XRP. Still, not all assets lost ground. A handful of altcoins attracted new capital, with Sui, Litecoin, and Cardano seeing steady inflows despite the broader pullback. Diversified crypto investment products also gained traction, drawing more than $31 million last week as investors sought safer, basket-based exposure.

Flows varied widely by region, with the United States responsible for the overwhelming majority of global outflows at nearly $2 billion. Several other markets followed with smaller declines. In contrast, Germany and Brazil bucked the trend by bringing in fresh capital as investors used the price correction as a buying opportunity.

Even with the recent weakness, some analysts argue that Bitcoin’s correction may be entering its later stages rather than forming a new prolonged downtrend. The market has twice resisted deeper drops below the $100,000 area, hinting that forced selling could be easing while buyers begin to anchor around a key support level.

Although it remains too early to confirm a reversal, several factors—such as ETF outflows, thin liquidity, and a pause in institutional activity—appear to be driving sentiment rather than any major structural deterioration. Traders remain cautious, but the underlying tone has shifted to one of gradual stabilization as the market awaits clearer macro signals.