The global cryptocurrency market cap has declined by 2.73%, reaching $3.27 trillion, yet it has grown by 57.23% over the past year. Bitcoin remains the leading force in the market.
Current State of the Crypto Market
Bitcoin (BTC) leads the market with a capitalization of $1.9 trillion, accounting for 58.15% of the total crypto market. The recent market decline is linked to significant outflows from U.S. spot Bitcoin ETFs.
Trends in ETF Outflows
Last week, ETF outflows totalled $559.41 million following $585.65 million the week before, indicating ongoing investor caution. On February 21, a significant trend reversal occurred, with a $60.63 million outflow, peaking at $364.93 million in a single day. Grayscale’s GBTC led the outflows with $60.08 million due to its conversion from a trust structure. Bitwise’s BITB and Fidelity’s FBTC saw $16.58 million and $12.47 million withdrawn, respectively. In contrast, BlackRock’s IBIT attracted $21.64 million in inflows, and VanEck’s HODL gained $4.71 million.
Crypto Investments and Market Impact
Despite outflows, broader crypto investment products saw $1.3 billion in inflows last week, totaling $7.3 billion for the year, marking five consecutive weeks of gains. However, total assets under management in ETPs fell from $181 billion in January to $163 billion due to the market downturn. Ethereum attracted the most inflows at $793 million, with its price at $2,100.
Despite recent outflows, interest in cryptocurrencies remains robust, as evidenced by trading volumes and inflows into various products. Bitcoin continues to dominate, with investors taking advantage of price dips.
