Investor caution resurfaced across digital asset markets last week, with capital flowing out of major crypto funds despite a handful of altcoins attracting fresh attention.
The latest data from CoinShares shows a clear split in sentiment: money leaving Bitcoin products at record pace, while assets like Solana and Ethereum quietly gained momentum.
The week’s movements followed Federal Reserve Chair Jerome Powell’s remarks that cast doubt on an imminent rate cut. Traders interpreted his tone as hawkish, prompting a broad wave of withdrawals from risk assets. In total, crypto investment vehicles saw $360 million in outflows, marking another sign of hesitation in the face of policy uncertainty.
Bitcoin Outflows Reach Record Levels
No asset was hit harder than Bitcoin, which saw roughly $946 million withdrawn from exchange-traded funds and other institutional products. CoinShares analysts said investors likely took profits after months of gains, as Powell’s statements revived fears of a “higher for longer” interest rate environment. The firm described Bitcoin as “the most policy-sensitive digital asset,” given its reliance on macro liquidity cycles.
While Bitcoin struggled, Solana (SOL) defied the trend. Fueled by demand from recently launched U.S. ETFs, Solana funds drew $421 million in new capital, the second-highest weekly inflow on record. The move lifted Solana’s total inflows for 2025 to over $3.3 billion, underscoring growing institutional confidence in the network’s long-term potential.
Ethereum and Altcoins Hold Steady
Ethereum (ETH) also posted solid results, adding $57.6 million in inflows amid generally muted trading volumes. Other large-cap coins — including XRP, Sui, Litecoin, Cardano, and Chainlink — attracted smaller amounts, suggesting that investors are still cautiously diversifying despite overall risk aversion.
Geographically, sentiment remained uneven. The United States recorded the steepest losses, with total outflows of about $439 million, while European markets — particularly Germany and Switzerland — reported modest but consistent inflows. Analysts say this regional contrast reflects Europe’s more measured response to U.S. monetary policy signals.
Investors Await Clearer Direction
The data paints a picture of a crypto market caught between optimism and restraint. Even with the prospect of rate cuts on the horizon, many investors appear unconvinced that the macro environment has turned supportive. For now, Bitcoin remains under pressure, while Solana and Ethereum are quietly carving out leadership roles in a reshaped digital asset landscape.
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Source: https://coindoo.com/bitcoin-suffers-nearly-1b-in-outflows-as-altcoins-attract-new-capital/
