Last week, crypto ETPs experienced record outflows, signaling a shift in investor sentiment amid falling prices.
Major Outflows from Bitcoin ETP
Crypto ETPs saw $1.43 billion in outflows, concluding a two-week rally that had brought in $4.3 billion. Bitcoin fell from $116,000 to $112,000, while Ethereum dropped from $4,250 to $4,100 on Tuesday. According to James Butterfill, head of research at CoinShares, this represents the largest losses since March 2025. Despite the losses, $594 million flowed into ETPs due to indications from the Fed regarding potential rate cuts.
Changes in the Crypto Industry
The crypto market remains in the red even after a dovish stance from the Fed chairman. This marks the first time since Trump took office that Powell has considered lowering interest rates. However, significant sell-offs from whales, including the sale of 24,000 BTC, pressured Bitcoin's price down to $111,000. Some analysts view large holders as potentially influencing market movements, as there are signs they may be acquiring Ethereum instead of Bitcoin.
Crypto Market in Stalemate
Despite price drops, Japanese investment firm Metaplanet continues to increase its asset holdings, acquiring an additional 103 BTC. However, the overall market remains stagnant, with some cryptocurrencies showing minor declines over 24 hours. Ethereum, which was at $4,583, faced sell-offs, now reflecting a 6.9% decrease from its earlier record high.
The current state of the cryptocurrency market raises questions regarding the impacts of large holders and changing investor sentiments, whose actions may shape future trends.
