Bitcoin investment products recorded $264.4 million in outflows over the past week, marking a third consecutive week of losses. However, the pace of withdrawals slowed sharply, even as altcoin funds posted their first inflows since mid-January, according to the latest CoinShares Digital Asset Fund Flows report. XRP-led products attracted $63.1 million in inflows, while Ethereum and Solana funds added $5.3 million and $8.2 million, respectively. In total, crypto fund outflows fell to $187 million, down dramatically from $1.695 billion the previous week and $1.73 billion the week before that. The slowdown sounds promising, said CoinShares head of research James Butterfill, who added that deceleration in fund flows has historically pointed to a potential market inflection point. But he added that the change in direction isn’t sufficient to substantiate a turnaround. Butterfill cited further signs that could indicate a break, including easing whale selling, deeply oversold conditions (the RSI has fallen to 16), and investor sentiment emerging that recent weakness has triggered a buying opportunity. Crypto prices rebound after sharp selloff The moderation in outflows coincided with a rebound in crypto prices following last week’s sharp selloff , during which Bitcoin fell to a nearly 16-month low of $62,822 and recovered to around $70,500, according to CoinGecko data. Currently, the leading digital asset is trading at $70,437after after last week’s sharp sell-off and subsequent rebound. It is down roughly 44% from its all-time high north of $126,000 set last October, when forced liquidations and whale sales triggered a crypto winter. Selling intensified last week, with the token posting its worst daily drop since November 2022 . “The current Bitcoin price action is a mere crisis of confidence. Nothing broke, no skeletons will show up,” Bernstein analyst Gautam Chhugani said in a note on Monday morning. “In an AI world, Bitcoin and crypto are not interesting enough,” Chhugani said, adding that the “Bitcoin bear case is the weakest in its history.” He also pointed out that spot ETFs have seen only a 7% outflow compared with a 50% correction in bitcoin prices during last week’s sell-off. Despite the slowdown, sustained withdrawals pushed total crypto fund assets under management down to $129.8 billion. This is the lowest level since March 2025, when the Trump administration announced a new round of tariffs. At the same time, exchange-traded product (ETP) trading volumes hit a record $63.1 billion last week. This increase is in stark contrast with the trend of spot crypto markets. In a note to investors, 10x Research said trading volumes during the recent crash were significantly lower than those seen in October, indicating thinner liquidity and activity driven more by derivatives than by broad market participation. Analysts are split between bearish risks and long-term Bitcoin bulls Looking ahead, 10x Research remains cautious, pointing out that its altcoin model has been bearish since mid-January and warning that most altcoins remain structurally weak. On prediction market Myriad, users assign just a 10% probability to an “alt season” occurring in the first quarter of the year. Similarly, sentiment toward Bitcoin is mixed. Myriad users consider a 56% probability that Bitcoin’s next significant shift will be toward $55,000 — not $84,000 — and 10x Research suggests any recovery below $91,000 would likely be a countertrend bounce. More bearish voices persist, with Bloomberg Intelligence strategist Mike McGlone reiterating that Bitcoin could eventually decline to $10,000, citing pressure on highly speculative assets in a tightening environment. Even so, long-term bulls are hanging steady. CryptoMondays founder Lou Kerner reaffirmed his forecast, stating in the Quantum Economics blog that Bitcoin could hit $1 million by 2031. Butterfill cautioned about short-term market volatility, noting that such a massive price drop is often accompanied by fund defaults or stress events that have been largely invisible to date. Join a premium crypto trading community free for 30 days - normally $100/mo.
