Cryptocurrency Withdrawals Reach $1.7 Billion: Bitcoin Bears the Brunt - 17-03-25

The cryptocurrency market continues to endure a period of sustained capital outflows. According to the latest report from CoinShares, digital asset investment products have experienced their fifth consecutive week of withdrawals.

This comes amid a persistent bearish sentiment, with Bitcoin (BTC) bearing the worst of it, as its price remains well below the $90,000 threshold.

Cryptocurrency Withdrawals Total $1.7 Billion

The report indicates that total crypto withdrawals reached $1.687 billion, bringing the total losses during this negative streak to $6.4 billion. This also marks the 17th consecutive day of outflows, making it the longest uninterrupted capital withdrawal streak since 2015.

Despite the ongoing decline, year-to-date (YTD) inflows remain positive at $912 million. However, the recent market correction and consistent investor withdrawals have led to a reduction of $48 billion in total assets under management (AuM) in digital asset investment products.

The U.S. Leads in Crypto Outflows

According to the report, the United States remains the epicenter of the ongoing crypto outflows, accounting for $1.16 billion in withdrawals, representing approximately 93% of all outflows during this negative streak. In contrast, Germany saw a modest inflow of $8 million, indicating regional variations in investor sentiment.

Bitcoin Continues to Bear the Heaviest Withdrawals

Bitcoin continues to bear the brunt of investor withdrawals, with an additional $978 million in outflows during the past week, bringing its total over the last five weeks to $5.4 billion. Meanwhile, short positions in Bitcoin also saw $3.6 million in withdrawals, signaling a general decline in bearish bets against the leading cryptocurrency.

XRP Stands Out Among Digital Assets

While most digital assets have declined, XRP continues to attract investment. It saw an additional $1.8 million in inflows, standing out as one of the few assets with positive momentum. This optimism is likely due to the widespread hope of an imminent conclusion to the prolonged legal battle between Ripple and the U.S. SEC.

There is also hope that the SEC may reclassify XRP as a commodity. One of the most surprising developments during this market downturn has been the near disappearance of assets under management at the Binance exchange.