Crypto Investment Products See Fourth Straight Week of Outflows, Bleeding $4.75B

Digital asset investment products have recorded their fourth consecutive week of outflows, with investors pulling $876 million in the past week. While the pace of withdrawals has slowed, overall sentiment remains bearish, bringing total outflows over the past month to $4.75 billion, according to a report by CoinShares. This has significantly reduced year-to-date inflows to $2.6 billion and driven total assets under management (AUM) down by $39 billion to $142 billion, the lowest level since mid-November 2024.

U.S. Investors Sold Around $1 Billion

U.S. investors were the most aggressive sellers, accounting for $922 million in outflows. In contrast, Switzerland, Canada, and Germany saw inflows of $23 million, $14.7 million, and $13.3 million, respectively, suggesting a more optimistic stance in these regions. Bitcoin remained the primary focus of sell-offs, with $756 million withdrawn last week. Short-Bitcoin products also saw outflows of $19.8 million, the highest since December 2024. Other altcoins experienced similar pressure, with Ethereum losing $89 million, Tron $32 million, and Aave $2.4 million. However, some assets bucked the trend—Solana, XRP, and Sui recorded inflows of $16.4 million, $5.6 million, and $2.7 million, respectively. Meanwhile, blockchain equity exchange-traded products (ETPs) were not spared, witnessing $48 million in outflows as investor caution persisted.

Whales Start Accumulating Bitcoin

Bitcoin’s recent price volatility has been closely tied to whale and shark activity, with large holders making significant moves over the past six months. According to Santiment, wallets holding 10 or more BTC mildly dumped their holdings from mid-February to early March, contributing to the recent market downturn. However, since March 3, these large stakeholders have reversed course, accumulating nearly 5,000 BTC back into their wallets. While prices have yet to reflect this buying activity, analysts suggest that if accumulation continues, the latter half of March could see a more positive market shift, Santiment said.

Meanwhile, Ryan Lee, Chief Analyst at Bitget Research, predicts a critical week ahead for Bitcoin. In a note shared with Cryptonews.com, he mentioned $70,000 to $75,000 as a key support zone, with resistance at $85,000–$87,000. A drop below $77,000 could push BTC toward the $70,000–$72,000 range, while a rebound from $75,000 may drive the price back up to $80,000–$85,000. He expects Bitcoin to stabilize near $83,000 by March 18-19, depending on market sentiment and external factors such as regulatory news and the upcoming FOMC meeting. Ethereum, meanwhile, faces a wide trading range between $1,700 and $2,500. If Bitcoin weakens, ETH could fall to $1,714–$1,800, while a strong market could lift it toward $2,300–$2,500. Key drivers include ETF net flows and broader crypto market sentiment.