Digital asset investment products continued their fourth week of outflows, with a fall of $876 million in the past trading week, the market hit $4.75 billion in prolonged selloffs. The sell-offs, mainly led by the US investors affected the price of popular cryptos like Bitcoin and Ethereum.
The crypto market remains under pressure, witnessing the fourth consecutive week of crypto investment product outflows. With $876 million in withdrawals in the past week alone, the total sell-off hits $4.75 billion. Bitcoin leading the sell-off and is down 14.63% trading at $79, 675, a steep decline from its 100K milestone during the last part of 2024. Popular altcoins like Ethereum followed a similar trajectory, down 3.97%, currently trading at $2,025.
Asset under Management (AuM) dropped $142 million, a 39% decline from its peak, signaling the impact of correction in the crypto sector. Though most investor’s confidence is affected, the resilience of many altcoins makes some consider this dip as a buying opportunity, visualizing the long-term changes coming into the US crypto market with the new Trump administration.
Compared to the previous week which curated a record $2.9 billion in outflows, the March 7 reports are relaxing, but it doesn’t make a change in the crypto market which has been facing a bearish trend in the past 30 days.
Evaluating the data, the sell-offs have been driven mainly by the US investors, almost $922 million have been withdrawn during the time span while countries like Canada, Switzerland, and Germany have accumulated $14.7 million, $23 million, and $13,3 million respectively, highlighting the mixed sentiment of investors, some consider it a downturn while others a strategy to enhance their crypto portfolio.
Bitcoin Experiences The Largest Sell-Offs
Bitcoin saw the most significant outflows in the past week, with around $756 million withdrawn according to CoinShares. In addition, Bitcoin investment products also witnessed $19.8 million in outflows, the highest since December 2024, indicating trader’s capitulation.
The continued outflows were mainly driven by US spot Bitcoin ETFs, with $409.21 million on March 7 alone, the outflow has accumulated around $799 million in the past week. Failing to regain $90,000 and Donald Trump’s strategic crypto reserve announcement has affected the Bitcoin price.
According to reports, the bearish trend is likely to continue this week, however many find this an opportunity to buy Bitcoins at a lower price excepting a price increase in the short term future.
Ethereum And Other Altcoins Follow The Bitcoin Downturn
Not only Bitcoin the entire crypto market is facing a downturn. Ethereum has shown $89 million in net outflows. According to the weekly report, nearly $119.83 million were withdrawn from the US spot ETH Exchange Traded Funds (ETFs). However, the US outflows have been neutralized by the inflows from other countries.
Looking over altcoins, Tron (TRX) has witnessed $32 million in outflows, while Solana lost $16.4 million in outflows. Coins like Aave (AAVE), Ripple (XRP), and Sui (SUI) have also seen outflows, but they are comparably low with that of major cryptos.
