Bitcoin, XRP, and Cardano Face $415M Outflows as Crypto ETPs See First Decline in Five Months
Mostly XRP and Cardano faced massive investor pullbacks as crypto ETPs saw $415 million in outflows, marking the first major decline in months. Bitcoin also took a hit amid shifting market sentiment.
- Massive Outflows Hit Crypto ETPs – Bitcoin, XRP, and Cardano lead a $415 million investor withdrawal, marking the first major decline in months.
- Market Sentiment Shifts as Crypto Investments Decline – Analysts weigh in on the reasons behind the outflows and potential implications for digital assets.
- Future Outlook for Bitcoin, XRP, and Cardano – What this downturn means for investors and how the crypto market could respond moving forward.
In a significant shift within the cryptocurrency investment landscape, digital asset investment products have experienced their first major outflows in nearly five months, totaling $415 million. This development marks the end of a 19-week streak of consistent inflows, which had amassed approximately $29.4 billion into the market following the U.S. presidential election in November 2024.
Bitcoin Dominates Outflows
Bitcoin (BTC) investment products were the most affected, with outflows reaching $430 million in the past week. This substantial withdrawal has pushed BTC-focused funds into a net negative position of $22 million for February 2025. Notably, there was no corresponding increase in short-Bitcoin positions, which saw $9.6 million in withdrawals, suggesting that investors are opting to pull capital rather than hedge against potential downturns.
As of February 17, 2025, Bitcoin is trading at $95,353, reflecting a 1.72% decrease from the previous close.
XRP, Cardano, and Others Exhibit Mixed Responses
While Bitcoin faced significant outflows, certain altcoins demonstrated resilience. Solana (SOL) led the altcoin category with inflows of $8.9 million, followed by XRP with $8.5 million, and Sui registering $6 million in inflows. These figures indicate sustained investor interest in these assets despite the broader market retreat.
XRP is currently priced at $2.62, experiencing a 3.68% decline from the previous close.
Cardano (ADA), another prominent altcoin, has seen a 70% increase in trading volume over the past 24 hours, accompanied by a price rebound. ADA is currently trading at $0.798149, reflecting a 3.23% increase from the previous close.
Macroeconomic Factors Influence Investor Behavior
The recent outflows are largely attributed to macroeconomic factors, notably Federal Reserve Chair Jerome Powell’s hawkish remarks during a Congressional meeting and higher-than-expected U.S. inflation data. These developments have shifted interest rate expectations, leading investors to reassess their positions in cryptocurrency assets.
Geographical Disparities in Investment Trends
The U.S. market bore the brunt of the withdrawals, with $464 million in outflows. In contrast, other regions demonstrated resilience; Germany’s crypto ETP market recorded inflows of $21 million, Switzerland saw $12.5 million, and Canada registered $10.2 million in inflows. This suggests that while U.S. investors are retreating, confidence in digital assets remains stronger in other parts of the world.
Outlook for the Cryptocurrency Market
The current landscape presents a complex picture for investors. While Bitcoin and certain other assets are experiencing significant outflows, the sustained interest in altcoins and positive inflows in non-U.S. markets indicate a nuanced investor sentiment. As macroeconomic conditions continue to evolve, market participants will likely remain vigilant, adjusting their strategies in response to both global economic indicators and regional developments within the cryptocurrency sector.
