• Digital asset funds faced $223M in weekly outflows, breaking a 15-week streak.
• Bitcoin saw $404M outflows, but demand indicators remain positive.
• Ethereum, XRP, Solana, and SEI continued to attract capital despite the dip.

Digital asset investment products had seen their first week of outflows in nearly four months, as a net of $223 million was withdrawn, the CoinShares weekly report shows.

Having begun the week on a robust note, gathering $883 million of flows at one point, sentiment abruptly reversed after the FOMC meeting hawkishness. Optimistic U.S. economic data only served to exacerbate the squeeze, causing a risk-off episode within the financial space.

The knockout blow, however, came on Friday when over $1 billion exited the crypto space on just one day alone. Although softer payroll data lent some dovish commentary on the next step of the Fed, sentiment had already become negative on balance.

The flows, however, may well prove temporary profit-taking, as $12.2 billion flowed into digital asset funds over the previous 30 days alone, half of year-to-date flows.

Also Read: Bitcoin Faces Critical Double Top, Could Drop to $105,000

Bitcoin Outflows Spike, but Ethereum and Altcoins Hold Ground

Bitcoin bore the heaviest impact from shifting investor mood, seeing $404 million in outflows during the week. Still, the year-to-date inflows for the top cryptocurrency remain solid at $20 billion. This reflects how closely Bitcoin tracks macroeconomic signals and monetary policy pivots.

Ethereum proved more resilient. It closed its 15th straight week with net inflows, totaling $133 million. That continued momentum signals ongoing confidence in Ethereum’s long-term utility and network upgrades.

Other altcoins such as XRP, Solana, and SEI also maintained positive flows. XRP attracted $31.2 million, Solana brought in $8.8 million, and SEI received $5.8 million in fresh capital.

Smaller players like Aave and Sui posted modest inflows of $1.2 million and $0.8 million, respectively. These trends suggest selective confidence among investors, even amid broader risk aversion.

CryptoQuant Sees Strong Bitcoin Demand Holding Steady

Despite the year-to-date depreciation of prices as well as fund flows, the intrinsic demand fundamentals of Bitcoin are still positive. As CryptoQuant reported, demand for BTC has remained positive through three main indicators.

First, by comparing fresh issues to inactive inventories, evident demand found that over 160,000 BTC had accumulated over the past 30 days.

Second, the buy-only addresses, i.e., accumulation addresses, increased their holdings by nearly 50,000 BTC during the same time period. It is a positive holding sentiment of dedicated buyers.

Lastly, the availability of bitcoin on OTC desks, on which institutional trades tend to settle, has fallen dramatically from 550,000 BTC in 2021 to just 145,000 BTC recently. That drop suggests diminishing selling pressure as well as long-term holding accumulation.

Also Read: Bitcoin ETFs See $812 Million Outflows as Institutions Rebalance Holdings