Crypto withdrawals totaled $508 million last week, making it the second time in 2025 that we’ve seen negative flows. Over the past two weeks, withdrawals have reached $925 million.
These withdrawals suggest a change in investor mood after an 18-week rally that brought in $29 billion, as investors consider the effects of recent US economic events and the uncertainty around trade tariffs, inflation, and monetary policy.
Bitcoin Takes the Biggest Hit While Altcoins Rally
The latest CoinShares report shows that Bitcoin (BTC) took the biggest hit from investor worry, with $571 million in withdrawals. In addition, some traders decided to increase their short positions, leading to $2.8 million in inflows for short-Bitcoin products.
This follows a similar pattern from the previous week, when the Federal Reserve’s tough stance and CPI data led to the first crypto withdrawals of 2025. According to CoinShares, these withdrawals are happening due to increased caution as investors continue to analyze US economic data.
“We believe investors are being cautious after the US Presidential inauguration, with uncertainty around Trump’s trade tariffs, inflation, and monetary policy. This is also clear in trading activity, which has dropped from $22 billion two weeks ago to $13 billion last week,” the report said.
In terms of regions, the US had the largest share of withdrawals, losing $560 million, raising concerns about the country’s economic policies.
Interestingly, while Bitcoin faced struggles, altcoins showed positive momentum. XRP led the way with $38.3 million in inflows, bringing its total since mid-November 2025 to $819 million.
XRP’s strong performance comes as anticipation builds for a US SEC (Securities and Exchange Commission) decision on an XRP ETF. The deadline for the SEC to approve or reject certain ETF applications has begun, and investors are hopeful that XRP will gain clearer regulatory status.
If approved, an XRP ETF could attract more institutional investment, strengthening the altcoin’s resilience in a market facing broader uncertainty. However, XRP’s surge also reflects growing investor optimism that the US SEC may drop its lawsuit against Ripple.
Recent developments, like the SEC’s acknowledgment of Bitwise’s XRP ETF application and the launch of an XRP ETF in Brazil through Hashdex, have further fueled speculation.
Other altcoins also saw inflows, with Solana attracting $9 million, Ethereum gaining $3.7 million, and Sui receiving $1.5 million. This suggests a shift in investor focus from Bitcoin’s “digital gold” narrative to altcoins with stronger technical foundations and growth potential.
Meanwhile, this cautious market sentiment could be further impacted by upcoming US economic data this week. As BeInCrypto reported, Thursday’s GDP report and Friday’s PCE inflation data could offer key insights into the Federal Reserve’s future policies.
As Bitcoin becomes more sensitive to macroeconomic uncertainty, negative reports later in the week could increase selling pressure. Altcoins, on the other hand, seem to be benefiting from speculative interest and potential diversification strategies.
The differing investor sentiment between Bitcoin and altcoins hints at a possible shift in market dynamics, with some analysts predicting an upcoming altcoin season.
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