Digital investment products recorded a whopping $1.17 billion in outflows as the broader market faced a liquidity crisis.
CoinShares has released its Digital Asset Fund Flow weekly report, which shows that crypto-based products recorded up to $1.17 billion in outflows. This reflects the harsh conditions that plagued the broader cryptocurrency market this past week. Even Bitcoin BTC $69 578 24h volatility: 2.5% Market cap: $1.39 T Vol. 24h: $36.75 B struggled significantly to hold the $100,000 support level.
Bitcoin Leads Digital Investments Outflows
According to CoinShares, the outlook was largely driven by post-liquidity cascade volatility and uncertainty over a potential United States Federal Reserve interest rate cut.
The gloominess in the market resembled the same situation from Oct. 10, when President Donald Trump announced a 100% tariff for US-China trade. Thankfully, both entities later reached an agreement to reduce the tariff.
For the latest outflows in the crypto space, Bitcoin was the focus. Its outflows summed up to $932 million this past week. On the other hand, short Bitcoin Exchange Traded Products (ETPs) recorded inflows of up to $11.8 million. Similarly, Ethereum ETH $2 078 24h volatility: 4.8% Market cap: $250.90 B Vol. 24h: $16.65 B registered some substantive outflows, which were approximately $438 million.
Solana SOL $88.10 24h volatility: 4.8% Market cap: $50.45 B Vol. 24h: $3.60 B , Ripple-associated XRP XRP $1.38 24h volatility: 3.1% Market cap: $84.35 B Vol. 24h: $2.08 B , and other altcoins performed better than Bitcoin and Ethereum. They recorded inflows amid the broader market liquidity drain.
For instance, only Solana saw inflows of $118 million this last week and $2.1 billion over the last nine weeks. HBAR HBAR $0.0907 24h volatility: 4.7% Market cap: $3.93 B Vol. 24h: $86.70 M recorded a notable inflow of $26.8 million, while Hyperliquid bagged $4.2 million in inflow.
Crypto Liquidation Totalled $341.85 Million
Meanwhile, the broader crypto market saw a massive liquidation of $341.85 million, with short traders bearing a major percentage of these losses. Coincidentally, the Bitcoin price has rebounded to around $106,000 after suffering from a week-long negative sentiment.
CoinGlass liquidation heatmap showed that a total of 117,978 short and long traders were liquidated in the crypto market within 24 hours. Liquidation from Bitcoin came in at $115.98 million, with short traders’ losses capped at $106.75 million. Long traders who undershot their bets were not left out, as they also lost $9.22 million. Also, Ethereum liquidations were capped at $92.01 million, and short traders were also more affected.
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