Bitcoin, Ethereum See Heavy Selling As Crypto Funds Lose $952 Million - What’s Next for Digital Assets?
The crypto market just took a billion-dollar gut punch. Bitcoin and Ethereum are getting hammered by heavy selling pressure, with institutional funds bleeding out a staggering $952 million in outflows. This isn't your average dip—it's a full-scale liquidity crunch shaking the foundations of the digital asset space.
The Great Unwind
Forget the usual volatility chatter. This sell-off has a distinct institutional flavor. The massive outflow suggests a coordinated move by big players—hedge funds, ETFs, and crypto-native funds—are hitting the exits. It's a classic risk-off maneuver, the kind that makes retail traders feel like they're bringing a knife to a gunfight. When the so-called 'smart money' runs for the hills, everyone else gets trampled in the stampede.
Reading Between the Lines
Let's be clear: a $952 million loss isn't a rounding error. It's a statement. It signals a rapid reassessment of risk appetite in a sector that's still fighting for mainstream legitimacy. Some will call it a healthy correction; others will see it as a warning shot across the bow of over-leveraged portfolios. Either way, it exposes the fragile psychology underpinning crypto valuations—where sentiment can shift faster than a blockchain transaction.
So, is this the beginning of a deeper downturn or just a brutal shakeout before the next leg up? History suggests crypto has a nasty habit of making fools out of both permabulls and permabears. One cynical take? The same Wall Street suits who talked up 'digital gold' on the way in are now dumping it at the first sign of trouble—proving that some things, like self-preservation, are more decentralized than any cryptocurrency. Buckle up.
Ethereum and Bitcoin Bear the Brunt
Ethereum recorded the highest outflows during the week at $555 million. It is a measure of how responsive it is to US regulation, seeing as regulations can influence staking, participation, and institutional usage.
Despite experiencing such a setback, ethereum remains robust in the long term, having experienced a year-to-date flow of $12.7 billion against $5.3 billion in the previous year.
Source: CoinShares
Bitcoin was not left out either as it lost $460 million. As for the whole year, total Bitcoin inflows stand at $27.2 billion, which is lower than what was seen in 2024, which stood at $41.6 billion.
However, solana and XRP continued to attract even more money as total inflows for both reached $48.5 million and $62.9 million, respectively.
Bitcoin and Ethereum Supply Gap Widens Again
The trend on CryptoQuant further reinforces the cautious stance that the chasm between the supply of Bitcoin and Ethereum is again widening.
Source: CryptoQuant
The on-chain indicators reveal that the liquidity for the buyer is declining, and the money is being circulated within the market and not added to it.
This is a similar trend seen when bitcoin was trading above $100,000, and it eventually caused a dramatic fall in price.
