Bitcoin suffers a $571 million loss as XRP attracts $38 million in new investor interest
Global crypto investment products experienced a second straight week of capital outflows, with investors pulling $508 million amid growing economic concerns, according to CoinShares’ latest weekly report.
Total outflows in the last two week’s reached $924 millions. This downturn follows an 18-week period of inflows amounting to $29 billion following Donald Trump’s election victory in November 2024.
James Butterfill, head of research at CoinShares, attributed the outflow trend to investor concerns over the US government’s approach to trade tariffs, inflation, and monetary policy. He said that traders are hesitant as they assess the impact these factors could have on the global financial scene.
The sharp drop in trading volume is a sign of investor caution, according to him. Weekly trading volumes fell from $22 Billion two weeks ago to only $13 Billion last week. This reflects a risk-averse attitude in the market.
Bitcoin and US Market Lead Outflows
Bitcoin bore the brunt of last week’s outflows, with investors withdrawing $571 million.
Short-Bitcoin product inflows were $2.8 million. This suggests that traders are protecting themselves against possible downside risks due to the ongoing market uncertainty.
Capital flight from the US was staggering, with $560 million. It is evident that US-based fund issuers such as Grayscale, Fidelity Ark 21Shares and Bitwise experienced outflows of over $100 million each.
While US investors struggled, European markets experienced continued inflows. Germany and Switzerland attracted respectively $30.5 million (Germany) and $15.8 millions (Switzerland), indicating a divergence of regional investor behaviour.
Similarly, other regions, such as Hong Kong, Canada, and Brazil, saw minor outflows of under $3 million each.
XRP dominates altcoins inflow
While Bitcoin was under pressure to sell, XRP saw the largest inflows of all altcoins last week. It attracted $38,3 million.
Since mid-November, XRP has attracted $819 million in investment, highlighting the continued interest of investors.
Butterfill noted that the increase in capital is a result of speculation that the US Securities and Exchange Commission, or SEC, may decide to drop their lawsuit against Ripple.
Moreover, investor interest has increased due to the optimism that could be generated by the possible approval of a XRP spot ETF in the US.
In addition, there were also capital inflows into other altcoins. Solana saw an increase of $8.9 Million, Ethereum added $3.7 Million, and Sui received $1.47million.
