Amidst a broader market downturn, Bitcoin investment products faced $719 million in outflows over the past week, but there was no significant uptick in short-bitcoin product demand.
This meant that bearish sentiment may lack conviction and could prove short-lived.
Crypto Funds Shed $812M
Across the broader digital asset market, outflows reached $812 million, driven by fading expectations for two US interest rate cuts in 2025 after stronger-than-expected economic indicators, including revised GDP and durable goods data. Despite the weekly setback, inflows remain strong.
According to the latest edition of CoinShares’ Digital Asset Fund Flows Weekly Report, the funds’ month-to-date inflows stand at $4 billion while recording $39.6 billion year-to-date, keeping the market on track to potentially challenge 2024’s record inflow of $48.6 billion if momentum continues.
Ethereum joined Bitcoin in facing heavy pressure, as it saw $409 million in weekly outflows, which sharply slowed its once-strong inflow momentum. Its year-to-date (YTD) inflows of $12 billion have nearly stalled, as September’s inflows barely reach $86.2 million.
Meanwhile, multi-asset funds lost $82.5 million over the past week, while Chainlink and Litecoin recorded small outflows of $0.7 million and $0.2 million, respectively.
On the other hand, Solana emerged as the week’s star after attracting a hefty $291 million, while XRP followed with $93.1 million, amidst increased excitement ahead of US ETF launches. Sui and Cardano posted more modest gains, and both drew $2.9 million and $1.3 million, respectively.
The United States saw the steepest decline as it logged $1 billion in outflows, while other regions fared better. Switzerland, for one, topped inflows with $126.8 million, while Canada and Germany recorded $58.6 million and $35.5 million, respectively, close behind. Modest contributions were also reported from Brazil at $8.9 million, Hong Kong at $2.5 million, and Australia at $1.7 million during the same period.
Confidence Returns
Crypto markets are showing early signs of stabilization after last week’s sharp selloff. On Monday, the two top assets, Bitcoin and Ethereum, reclaimed $113,000 and $4,100, respectively, and are holding near levels seen a week ago.
Despite significant ETF redemptions, particularly on Friday, QCP Capital noted that the spot prices remained steady over the weekend, which indicates that quarter-end basis unwinds were the main driver of outflows rather than selling pressure.
The firm also said that volatility is easing and is expected to drift lower as markets consolidate ahead of Friday’s US Non-Farm Payrolls (NFP) report, even as a potential US government shutdown raises timing questions. Perpetual futures markets also show renewed optimism, as open interest rose to $43.6 billion.
Wall Street’s strength has further boosted sentiment, and traders are cautiously positioning for a seasonally bullish “Uptober,” though Bitcoin must still break $115,000 to confirm an uptrend. Options data reflects a market regaining confidence, as seen with put skew and open interest in BTC and ETH gradually normalizing as traders rebuild exposure.
ポスト Bitcoin Bleeds $719M But Outflows Lack Short Bets Signaling Weak Bearish Conviction に初登場した。 クリプトポテト.
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