Digital Asset Funds Outflow Continue as Investors Pull Billions

Crypto investors have not stopped withdrawing funds from digital asset investment products for four weeks. In the past week alone, $876 million left the market, and over the past month, total outflows have reached $4.75 billion. 

Although the selling pace has reduced, market sentiment remains negative, showing that many investors are still unsure about the market’s fate. These withdrawals have significantly reduced year-to-date inflows to just $2.6 billion and cut total assets under management (AUM) by $39 billion. 

This brings the total to $142 billion, the lowest level seen since mid-November 2024.

Bitcoin Takes the Biggest Hit, But Some Altcoins See Gains

Bitcoin (BTC) saw $756 million in withdrawals last week, and even short-Bitcoin funds hit their highest outflows since December 2024. Ethereum (ETH) also lost $89 million, while Tron and Aave saw $32 million and $2.4 million in outflows.

Meanwhile, Solana (SOL), XRP, and Sui gained notable inflows, showing that some investors still believe in certain digital currencies. Notably, most withdrawals came from the U.S., where investors pulled $922 million, but Switzerland, Canada, and Germany saw inflows of $23 million, $14.7 million, and $13.3 million, respectively. 

This suggests that investors in these countries are showing more confidence in digital assets.

Digital Asset Funds Investors Are Making Moves

Bitcoin’s price is affected by large investors, called whales and sharks. For the past six months, they have made significant moves. They kept selling from January to early March, which was key in pushing Bitcoin’s price down.

However, since March 3, these whale investors have started buying again, adding nearly 5,000 BTC to their wallets. Market experts suggest that if this trend continues, the market could see a positive turnaround.

What’s Next for Bitcoin and Ethereum?

Ryan Lee, Chief Analyst at Bitget Research, believes the next few weeks will be critical for Bitcoin. Bitcoin’s key support is between $70,000 and $75,000, while resistance costs $85,000 to $87,000. 

Lee said if the asset’s price drops below $77,000, it could fall to $70,000–$72,000, but if it bounces from $75,000, it might rise to $80,000–$85,000. 

He believes Bitcoin could reach around $83,000 by March 18-19, depending on investor confidence and the upcoming Federal Open Market Committee (FOMC) meeting.

Also, Ethereum’s price is uncertain. If Bitcoin falls, ETH could drop to $1,714–$1,800, but if the market improves, it could rise to $2,300–$2,500. Its future depends on Exchange Traded Funds (ETFs) inflows and overall market trends.