Crypto Funds Bleed Again: 5 Weeks of Outflows Show Deepening Investor Fatigue

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Investors, ever the adventurous souls, have apparently lost their taste for digital assets, leaving crypto funds in a state of existential dread. Last week alone, a staggering $288 million bled out of these funds, which is about the same amount you’d lose if you tried to invest in a pyramid scheme in a third-world country.

Market participation has thinned so much, it’s like the entire crypto world took a nap and forgot to wake up. ETP trading slumped to $17 billion-so low, it’s the kind of number you’d expect from a toddler playing with a calculator. Institutions and retail investors alike are now more engaged with their cat videos than with Bitcoin.

Short Bets Quietly Surge

According to CoinShares’ latest report, Bitcoin is the financial equivalent of a bad breakup, shedding $215 million like it’s a bad habit. Meanwhile, short-bitcoin funds are having a field day, sucking in $5.5 million like a vacuum cleaner at a party where everyone’s wearing socks. Ethereum? It’s having a midlife crisis, losing $36.5 million, while Tron and others are clearly auditioning for the role of “Most Dramatic Asset.”

XRP, Solana, and Chainlink tried to be the heroes of the story, luring in tiny inflows of $1.2 million to $3.5 million. But let’s be honest, they’re just trying to keep the lights on while the rest of the altcoins throw a tantrum.

The US, ever the drama queen, contributed $347 million in outflows, while the rest of the world, with the exception of Brazil, Australia, and the Netherlands, decided to buy into the chaos. Switzerland, Canada, and Germany, meanwhile, are acting like they’ve discovered a secret Bitcoin buffet.

Bitcoin Stuck in a Macro Storm

Bitcoin dipped below $65,000, triggering a cascade of long liquidations that would make a toddler cry. The reason? A mix of geopolitical tensions and a guy named Donald Trump who thinks tariffs are the new black. The Supreme Court, meanwhile, just handed him a red card for his “Liberation Day” tariffs, which is about as effective as a screen door on a submarine.

QCP Capital is now pondering not whether Bitcoin has failed, but how long this storm will last. It’s like watching a toddler throw a tantrum in a supermarket-no one knows when it’ll end, but everyone’s exhausted.

With BTC on track for a fifth straight monthly loss, history’s late-stage warning bell is ringing. All eyes are now on the Clarity Act and US-Iran talks, because nothing says “recovery” like a bunch of politicians arguing over something they barely understand. But hey, if Bitcoin can reclaim $74,000, maybe it’ll finally learn to stop acting like a diva.

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2026-02-24 07:54