Billion-dollar outflows in cryptocurrency funds reinforce flight from the US
Cryptocurrency investment funds faced a new wave of significant withdrawals, totaling $1.17 billion last week. This movement marks the second consecutive week of redemptions, with a strong predominance of the United States in the capital exodus.
According to the report released on November 10 by James Butterfill, head of research at CoinShares, the outflows were predominantly concentrated in Bitcoin and Ethereum, which lost $932 million and $438 million, respectively. Butterfill highlighted that the negative sentiment was intensified by political uncertainty, following a brief intraday recovery fueled by hopes of resolving the US government shutdown.
While Bitcoin purchase products suffered from redemptions, the asset's sell ETPs recorded inflows of $11.8 million. This marks the largest weekly flow for bearish bets since May, reflecting a more defensive strategy by some investors, who seek to profit from potential additional declines in the cryptocurrency's price.
Despite the pressure on major digital assets, altcoins challenged the negative trend. Solana (SOL) maintained its remarkable performance, attracting $118 million in investments and accumulating a total of $2.1 billion in just nine weeks. Other cryptocurrencies, such as Hedera (HBAR) and Hyperliquid (HLP), also recorded gains of $26.8 million and $4.2 million, respectively.
The divergence between the US and European markets became even more evident. While American investors reduced their positions, Germany and Switzerland captured $41.3 million and $49.7 million, respectively. The contrast reinforces the perception that, although the global cryptocurrency market faces pressures, confidence in Europe remains on a more optimistic trajectory concerning the current macroeconomic environment.
Source: PortalCripto
