Crypto Funds Bleed $1.73 Billion as Bearish Sentiment Tightens Grip: 3 Forces Driving the Exodus

Crypto funds recorded their largest weekly outflows since mid-November 2025, totaling $1.73 billion, reflecting persistent risk-off sentiment. The sell-off was heavily concentrated in the US, with Bitcoin leading the retreat with $1.09 billion in outflows, marking its largest since that period, suggesting sentiment has not recovered from October's price dislocation. While most assets saw withdrawals, Solana, Binance, and Chainlink experienced minor inflows.

CoinShares Head of Research, James Butterfill, identified three core forces driving this exodus: 1) Dwindling expectations for interest rate cuts, which removes a major bullish macro tailwind for speculative assets. 2) Negative price momentum, as the failure to sustain upside since the October 2025 drawdown keeps risk-managed strategies sidelined. 3) Disappointment that digital assets have not yet participated in the expected debasement trade despite high government borrowing and currency dilution concerns.

Overall, the data indicates a broad recalibration of crypto exposure, and outflows are expected to persist until macro expectations shift, price momentum improves, or crypto convincingly reasserts its macro relevance.

(Source：BeInCrypto)