The digital asset market is currently feeling the pressure as geopolitical tensions impact investor sentiment, with bearish trends dominating the cryptocurrency landscape. Last week, the crypto market saw a significant downturn, as outflows totaled $240 million, primarily driven by market anxieties following the announcement of US trade tariffs by President Donald Trump.
Key Crypto Losses in the Past 24 Hours
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Bitcoin (BTC) dropped 7.89%, now trading at $76,706.
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Ethereum (ETH) plummeted by 16.39%, falling to $1,498.
These drops have caused Bitcoin to violate many key support levels, including the significant 50-week Exponential Moving Average (EMA) at $77,000. Further downside pressure is indicated by the development of a “death cross” on the BTC/USD daily chart.
Massive Outflows: Where Are Investors Pulling Funds?
With $207 million leaving the market, Coin Shares found that most of last week’s withdrawals focused on Bitcoin. Ethereum trailed with $37.7 million in outflows. Other noteworthy leaves were:
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Solana: $1.8 million
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Sui: $4.7 million
When one considers retail sell-offs and drops in over-the-counter trading activity, the total outflow from digital asset products amounts to $240 million.
Key Takeaway: The crypto market is under stress, reflecting broader macroeconomic shifts. However, it remains more resilient compared to traditional markets.
Fear Grips Both Traditional and Crypto Markets
Crypto investors are very fearful, even though the market is volatile. Even worse than the COVID-19 catastrophe and Black Monday in 1987, the Fear & Greed Index for conventional financial markets recently struck rock bottom. The Crypto Fear & Greed Index, on the other hand, is at 23, which is very scary but also shows that digital assets are still doing better than conventional finance.
Highlights:
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Traditional Finance Fear & Greed Index: At an all-time low
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Crypto Fear & Greed Index: Currently at 23, signaling fear but more optimism compared to traditional markets
Global Outflows: Who’s Pulling the Most?
Crypto Market Strategy and Insight Outflows came from many areas, not just one. Leading the push and removing $210 million from crypto products were US investors. Among other noteworthy outflows are:
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Germany: $17.7 million
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Canada: Despite the downturn, Canada saw $4.8 million in inflows, suggesting some investors saw an opportunity in the market.
Interestingly, Toncoin (TON) stood out as a vivacious performer, recording $1.1 million in inflows, defying the general trend.
Blockchain Equities Spot Amidst the Bear Market
While blockchain equities showed resiliency and recorded their second consecutive week of inflows, $8 million, crypto funds saw a notable departure. This implies that investors might be turning their attention from erratic digital currencies to blockchain businesses, which they consider cheap.
Crypto Investment Products Stable Despite Outflows
With a 0.8% rise today at $132.6 billion, total assets under management (AUM) in crypto investment products were constant despite market volatility. This emphasizes how much interest and money the crypto industry still attracts, notwithstanding transient outflows.
Take Action: Keep Monitoring the Market
Investors must keep educated and ready as the market negotiates these erratic circumstances. Whether your goals are to diversify your portfolio, purchase the dip, or investigate alternative investments like blockchain stocks, keeping current with market trends can enable you to make better selections.
