Cryptocurrency investment inflows saw a sharp contrast last week, falling to $270 million, indicating a slowdown after consecutive weeks of strong activity.
Year-to-date inflows reached a record $37.3 billion, reflecting continued growth in institutional interest in cryptocurrencies despite market volatility.
Crypto inflows fall
Last week, Bitcoin suffered significant outflows of $457 million, marking the first notable withdrawal since early September. This comes after a series of positive inflows into digital asset investment products as BTC reached new highs.
Specifically, cryptocurrency inflows reached $3.12 billion in the previous week. The impact of macroeconomic trends also played a role.
Two weeks ago, capital inflows hit $2.2 billion as optimism surrounding a sweeping Republican victory in the U.S. election and a dovish Federal Reserve stance boosted investor sentiment. However, the momentum appears to be fading.
After the initial post-election rally, inflows have moderated. Last week’s figures also reflect a significant pullback from the $1.98 billion seen immediately after the election.
CoinShares' James Butterfill attributes the selloff to profit-taking after Bitcoin approached the psychological $100,000 level:
We believe this is profit-taking after Bitcoin tested the psychological $100K level, Butterfill wrote.
Cryptocurrency inflows. Source: CoinShares
Cryptocurrency market divides opinions
Meanwhile, experts are divided on Bitcoin’s future. Bearish analysts, including prominent figures such as former Wall Street quantitative analyst Tone Vays, are predicting a further decline. Vays revealed his decision to exit all long positions at $97,800, reflecting caution among seasoned traders.
The analyst expressed skepticism about Bitcoin’s ability to maintain its $100K advance this year:
“I still think it’s unlikely to sustain a drop below $100,000 this year. I’d be more than happy to be wrong or buy the subscription at $90,000. I might even consider a short sale,” he said.
On the other hand, more optimistic views persist. Fundstrat’s Tom Lee remains bullish and has projected that Bitcoin will hit $250,000 by the end of 2025. However, Lee’s team acknowledges potential short-term setbacks, with some expecting a dip to $60,000 before resuming its upward trajectory.
Robert Kiyosaki, author of “Rich Dad, Poor Dad,” echoed this sentiment, but emphasized that any dip is a buying opportunity for long-term accumulation:
Bitcoin price is stuck below $100,000. This means BTC could drop to $60,000. If that happens, I won’t sell it, Kiyosaki said.
While Bitcoin faced outflows, Ethereum saw a massive $634 million inflow, indicating renewed investor confidence in the asset. Ethereum’s year-to-date inflows reached $2.2 billion, supported by a growing shift in sentiment as traders turn to altcoins amid Bitcoin’s near-term uncertainty.
The cryptocurrency exchange-traded product (ETP) market has seen a decline in trading volumes, dropping to $22 billion last week, compared to $34 billion the week before. Even with the introduction of options on U.S. exchange-traded funds (ETFs), their effect on overall market volumes has been limited.
This development raises concerns about the level of sustained institutional interest in these financial instruments.
The article Crypto investment drops to US$270 million with profit in Bitcoin was first seen on BeInCrypto Brazil.
