📉 Record Outflow: Crypto Funds Lose $1.73B in a Week
The past week (Jan 17–23) was a major stress test for institutional investors. According to the latest CoinShares report, net outflows hit $1.73 billion — the worst performance since mid-November 2025.
What’s driving the sell-off?
1️⃣ Fed Pivot Cooling: Market optimism regarding quick interest rate cuts is fading, putting pressure on risk assets.
2️⃣ Macro Tensions: Uncertainty over new trade tariffs and discussions in Davos have triggered a "risk-off" sentiment.
3️⃣ Hedge Doubts: Some investors are questioning crypto’s ability to act as a reliable hedge against currency devaluation in the current climate.
Regional Split:
🇺🇸 USA: Leading the exit with nearly $1.8B in outflows.
🇪🇺 Smart Money? While the US sells, investors in Switzerland, Germany, and Canada collectively poured $85.1M into crypto funds, looking for entry points.
Is this a healthy correction or the start of a deeper trend?
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