The cryptocurrency market is facing a significant wave of sell-offs, as exchange-traded products (ETPs) recorded $1.7 billion in outflows last week. This marks the fifth consecutive week of withdrawals, bringing the total outflows to $6.4 billion over the past month.
According to CoinShares’ latest report, this ongoing exodus has now extended to 17 straight days, making it the longest negative streak since the firm began tracking data in 2015. Despite the downturn, total year-to-date (YTD) inflows remain positive at $912 million, suggesting some resilience in the broader market.
Bitcoin ETPs Take the Hardest Hit
The largest outflows have come from Bitcoin ETPs, which saw investors pull $978 million between March 10 and March 14. This brings the total five-week Bitcoin ETP outflows to $5.4 billion, leaving only $612 million in YTD inflows.
Bitcoin’s price has remained volatile, dipping below key support levels as institutional sentiment weakens. Analysts suggest that continued outflows could further weigh on the crypto market, especially as macroeconomic uncertainty and regulatory concerns persist.
While Bitcoin and crypto ETPs have seen strong demand in recent months, the latest outflows indicate a shift in investor sentiment. With global markets facing heightened volatility, the next few weeks could be crucial in determining whether this trend continues or reverses.
What’s Next?
Despite the downturn, some analysts believe this could be a short-term correction rather than a long-term trend. The upcoming U.S. Federal Reserve meeting and key inflation data may play a critical role in shaping investor sentiment.
For now, the crypto industry will be watching closely to see if ETP outflows slow down—or if more investors decide to take their profits and exit the market.
