Crypto Investments Take a Hit: What's Going On?

Recent Trends

Crypto investment products have experienced a substantial drop in value over the past four weeks. Investors have withdrawn $4.9 billion from these funds, marking the third-largest withdrawal since 2018. The primary drivers behind this trend are a combination of increased selling and a decline in cryptocurrency values.

Bitcoin and Ethereum Lead the Outflows

• Bitcoin funds saw $1.27 billion in withdrawals last week, but there was a slight rebound on Friday with $225 million flowing back in.
• Ethereum funds experienced $589 million in outflows, primarily from U.S. spot Ethereum ETFs.

Other Cryptocurrencies

• Solana and other altcoins also saw withdrawals.
• XRP was an exception, with $89.3 million in inflows, likely due to the launch of a new ETF.

Global Withdrawals

• The U.S. saw the largest outflows at $1.69 billion.
• Europe and Canada also experienced significant withdrawals.
• Brazil and Australia were the only regions with positive inflows.

Year-to-Date Performance

Despite recent declines, year-to-date flows remain positive at $44.4 billion. While there are early signs of slowing sales, it is too early to confirm a turnaround.

Price Analysis

• Bitcoin is attempting to recover from a support level of $82,000, but it remains in a downward trend.
• Ethereum is stabilizing around $2,800, but faces strong resistance.