Crypto Withdrawals Reach $795 Million Amid Dampened Investor Sentiment Due to Trump’s Tariffs
/Article


Last week, there was a significant outflow of $795 million in the crypto market, marking the third consecutive week of negative flows amidst ongoing financial uncertainty affecting investor confidence. The latest CoinShares research also revealed that Bitcoin led the outflows at $751 million, while some altcoins like XRP, Ondo Finance (ONDO), Algorand (ALGO), and Avalanche (AVAX) experienced positive flows. This shift in flow dynamics indicates that investors are reconsidering their investment strategies, possibly moving towards altcoins as they navigate the instability in the broader economic landscape, impacting the Bitcoin market sentiment. The volatility, especially due to President Donald Trump's tariff announcements, is affecting digital asset investment products, leading to a significant downturn in crypto outflows. Despite Trump's temporary rollback of tariffs, assets under management (AuM) rose by 8% to $130 billion last week, showing signs of recovery after reaching the lowest point since November 2024. The increase in outflows, especially in Bitcoin and ETFs, reflects a cooling institutional interest, with traders also pulling out from short-Bitcoin products. The bearish trend in the crypto market is not confined to a specific region or provider, indicating a widespread cautious approach mirrored across various asset classes due to the uncertain trade environment created by Trump's tariffs.

Leave a Reply