Last week, the realm of cryptocurrency witnessed a rather alarming exodus, with outflows amounting to a staggering $508 million, thus marking the second instance of such negative flows in the year of our Lord, 2025. In total, the last fortnight has seen a disheartening $925 million depart from the coffers of hopeful investors.
This unfortunate trend appears to signal a notable shift in the sentiments of the investing populace, following an impressive 18-week rally that had amassed a princely sum of $29 billion. Alas, the specter of US economic events, coupled with the uncertainty surrounding trade tariffs, inflation, and monetary policy, has cast a pall over the once-optimistic outlook.
Bitcoin Suffers While Altcoins Flourish
According to the latest missive from CoinShares, it is Bitcoin (BTC) that has borne the brunt of this investor trepidation, suffering outflows of $571 million. In a rather curious turn of events, some traders have chosen to increase their short positions, resulting in a modest inflow of $2.8 million for short-Bitcoin products. How delightfully ironic! 😏
This trend mirrors that of the preceding week, wherein the hawkish proclamations from the Federal Reserve and the CPI data contributed to the inaugural crypto outflows of 2025. CoinShares notes that this latest wave of outflows is accompanied by a heightened sense of caution as investors continue to digest the rather unpalatable US economic data.
“We believe investors are exercising caution following the US Presidential inauguration and the consequent uncertainty surrounding Trump’s trade tariffs, inflation, and monetary policy. This is also evident in trading turnover, which has fallen considerably from $22 billion two weeks ago to a mere $13 billion last week,” the report candidly states.
Regionally, the United States has accounted for the lion’s share of these outflows, losing a staggering $560 million, thus accentuating concerns regarding the nation’s economic policies. One cannot help but chuckle at the irony of it all! 😂
Yet, in a most curious twist of fate, while Bitcoin languishes, the altcoins have continued to bask in the glow of positive momentum. XRP has gallantly led the charge with inflows of $38.3 million, bringing its total since mid-November 2025 to a commendable $819 million.
XRP’s robust performance is buoyed by the increasing anticipation surrounding a decision from the US SEC (Securities and Exchange Commission) regarding an XRP ETF. The deadline for the SEC to either approve or reject certain ETF applications has commenced, and investors remain ever hopeful for a glimmer of regulatory clarity.
Should the SEC grant approval, an XRP ETF could usher in a wave of institutional investment, thereby reinforcing the altcoin’s resilience amidst the broader market uncertainty. However, XRP’s recent surge reflects a growing optimism that the US SEC may indeed drop its lawsuit against Ripple. Oh, the drama! 🎭
Recent developments, including the SEC’s acknowledgment of Bitwise’s XRP ETF application and the launch of an XRP ETF in Brazil via Hashdex, have only served to stoke the fires of speculation further.
Other altcoins have also enjoyed a modicum of success, with Solana attracting $9 million, Ethereum gaining $3.7 million, and Sui receiving $1.5 million. This suggests a potential shift in investor focus from Bitcoin’s once-celebrated narrative of digital gold towards altcoins boasting stronger technical fundamentals and growth potential. How the tides have turned! 🌊
Meanwhile, this rather skittish market sentiment may be further influenced by the upcoming US economic data this week. As BeInCrypto has reported, Thursday’s GDP and Friday’s PCE inflation data could provide crucial insights into the Federal Reserve’s policy direction.
As Bitcoin’s sensitivity to macroeconomic uncertainty intensifies, any undesirable reports later in the week could exacerbate the selling pressure. In contrast, altcoins appear to be reaping the benefits of speculative interest and potential diversification plays.
The divergence in investor sentiment between Bitcoin and altcoins suggests a potential shift in market structure, with some analysts already envisioning an altcoin season. How delightful it is to witness such a spectacle unfold! 🎉
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2025-02-24 17:28