$1.7 billion leaked from cryptocurrency-related products… Will Bitcoin take a hit?

The cryptocurrency market continues to experience a period of persistent capital outflows. According to the latest CoinShares report, digital asset investment products have experienced outflows for 5 consecutive weeks. This is occurring amid the ongoing downtrend, with Bitcoin (BTC) remaining below $90,000 and suffering the biggest impact. Cryptocurrency Outflows Surge by Approximately $1.7 Billion According to the report, total cryptocurrency outflows amounted to $1.687 billion, and the cumulative losses during this negative trend have reached $6.4 billion. This marks the longest 17-day consecutive capital outflow period since 2015. Despite the persistent downtrend, year-to-date (YTD) inflows remain positive at $912 million. However, due to recent market adjustments and continued investor outflows, the total assets under management (AuM) of digital asset investment products have decreased by $48 billion. The report indicates that the United States continues to be the epicenter of the ongoing cryptocurrency outflows, recording $1.16 billion in outflows, accounting for approximately 93% of all outflows during this negative trend. In contrast, Germany experienced $80 million in inflows, reflecting regional differences in investor sentiment. Bitcoin has endured the worst of the investor outflows, recording an additional $978 million in outflows last week, bringing the 5-week total to $5.4 billion. Meanwhile, short Bitcoin positions also saw $3.6 million in outflows, suggesting a general decrease in bearish bets on the leading cryptocurrency. While most digital assets have declined, XRP continues to attract investment, recording an additional $1.8 million in inflows, making it one of the few assets showing positive momentum. This optimism appears to stem from hopes surrounding the impending conclusion of the long-standing legal dispute between Ripple and the U.S. Securities and Exchange Commission (SEC), as well as the possibility of the SEC reclassifying XRP as a commodity. One of the most notable developments during this market downturn has been the near-depletion of Binance's assets under management. Due to the exodus of major early investors, Binance's AuM has been almost entirely drained, with only $15 million remaining. The persistent selling follows a negative sentiment pattern that has persisted for several weeks. Last week's cryptocurrency outflows amounted to $876 million, with U.S. investors leading the market capitulation. Previously, outflows had already approached $3 billion, triggered by weak investor sentiment and increasing market fear. The continuous cryptocurrency outflows and declining AuM figures suggest that trust in the cryptocurrency sector has not yet fully recovered. However, the inflows into XRP and the slight uptick in Germany indicate that investor interest has not completely disappeared.