In brief
- Bitcoin funds saw weekly outflows slow from $1.7 billion to $264.4 million last week, while altcoin fund flows have turned positive for the first time in three weeks.
- CoinShares suggests that this slowdown in outflows could indicate that the market has hit a bottom, as crypto prices bounce following last week’s rout.
- Some analysts predict that the market may remain negative in the short- and medium-term, although long-term bulls remain characteristically bullish.
Bitcoin investment products saw $264.4 million in outflows over the past week, extending a three-week negative trend.
According to the latest CoinShares Digital Assets Funds Flows report, BTC funds posted their third consecutive week of outflows, yet altcoin funds attracted inflows for the first time since the middle of January.
XRP funds brought in $63.1 million in inflows, while Ethereum and Solana funds saw their respective balance sheets grow by $5.3 million and $8.2 million.
Overall, outflows from crypto funds have slowed significantly, from $1.695 billion last week (and $1.73 billion the week before) to $187 million.
An “inflection point”
For the report’s author, James Butterfill, this sharp slowdown could be significant, since “the deceleration in flows historically [signals] a potential inflection point.”
This slowdown also coincides with prices rebounding in the aftermath of last week’s big selloff, as Bitcoin plunged to a nearly 16-month low of $62,822, before recovering to a price around $70,500, per CoinGecko data.
Sustained outflows means that total assets under management for all crypto funds has declined to $129.8 billion, which the report notes is the lowest level since March 2025, when the Trump administration announced its package of tariffs.
Despite the continued drop in AUM, ETP volumes set a new record of $63.1 billion in the past week, exceeding the previous peak of $56.4 billion the market set last October.
This contrasts with volumes in cryptocurrency spot markets, with 10x Research publishing a note to investors yesterday highlighting that “volumes during the crash were significantly lower than during the October selloff, indicating thinner liquidity and derivatives-driven activity rather than broad market participation.”
In the near term, 10x Research notes that its altcoin model has been bearish since the middle of January, and that risk remains high as “most altcoins remain structurally weak.”
On prediction market Myriad, owned by Decrypt‘s parent company Dastan, users place just a 10% chance on an “alt season” taking place in the first quarter of the year.
10x Research has a similarly sober forecast for Bitcoin, suggesting that any recovery below $91,000 is likely to be a “countertrend” bounce. Myriad users see a 56% chance of Bitcoin’s next move taking it to $55,000 rather than $84,000.
Some analysts are even more bearish, with Bloomberg’s Mike McGlone sending out an update today in which he repeated his suggestion that Bitcoin could “revert toward $10,000, underscoring the inordinate burden on a highly speculative asset to stay lofty.”
On the other hand, perma-bullish investors continue to be bullish about Bitcoin, despite the events of the past week and the unstable macroeconomic environment.
Writing on the Quantum Economics blog, CryptoMondays founder Lou Kerner stood by his long-term BTC price prediction, which stands at $1 million by 2031.
“In January, 2021, I published a 10 year $1M price target on BTC,” he said. “NOTHING that has happened since, including over the last three months, gives me any concern whatsoever.”
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