The crypto investment market is facing a sharp downturn, with funds seeing outflows for four consecutive weeks. Last week alone, investors pulled out $876 million, pushing the total four-week outflow to a staggering $4.75 billion.
Post-Election Gains Wiped Out
The ongoing sell-off has erased gains made since November 2024, following Donald Trump’s U.S. presidential election victory. Total assets under management (AUM) for crypto investment products have plummeted by $39 billion, now standing at $142 billion. Despite this decline, cryptocurrency prices remain above pre-election levels, offering some resilience in the broader market.
Bitcoin and Ethereum Hit Hard
Bitcoin investment products suffered the most, with $756 million in outflows. Even products shorting Bitcoin saw a significant $19.8 million withdrawal, the highest since December 2024. Ethereum-focused funds also faced pressure, enduring $89 million in outflows.
Some Altcoins See Inflows
While major cryptocurrencies struggled, some altcoins saw investor interest. Solana (SOL) investment products attracted $16.4 million in inflows, while XRP and Sui (SUI) received $5.6 million and $2.7 million, respectively.
Investor sentiment remains weak in the U.S., with $922 million withdrawn last week. In contrast, European and Canadian investors showed some confidence, contributing modest inflows to crypto investment products.
Despite the downturn in investment products, Bitcoin remains up over 21% since November 5, and the CoinDesk 20 Index has risen around 30%, suggesting that broader market sentiment may still hold some strength.
