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Bitcoin Traders Battle Macro-Driven Red Wave
Crypto institutional products recorded $360 million outflows last week as “fear” clouded traders’ sentiment. CoinShares Weekly Fund Flows indicates an improved performance of altcoins compared to Bitcoin during the same period. Much of the outflow was linked to United States activities, with a close watch on the Federal Reserve.
Bitcoin saw $946 million in outflows over the past month, lowering yearly gains to $29.4 billion. Analysts attribute the bearish week to a hawkish tone by the Fed, which may lead to tighter interest rates.
Historically, this has fueled a broader downturn as investors move funds out of risky assets, while rate cuts bolster crypto and stock prices. At the moment, investors have downplayed the likelihood of December rate cuts, citing the absence of key economic indicators.
Amid hawkish Fed policies, traders are increasingly diversifying their portfolios, shifting assets to altcoins at a faster pace. This was predicted in January, as the market had already priced in another altcoin season for 2025.
 
Similarly, spot Bitcoin ETFs are facing hurdles due to mounting outflows over the last 48 hours. On Nov 4, these products saw $578 million outflows, marking a fifth straight day in the red zone.
“Regionally, negative sentiment was concentrated primarily in the US, which saw outflows totalling US$439m. This was partially offset by modest inflows from Germany and Switzerland, totalling US$32m and US$30.8m respectively. Bitcoin ETFs were the only major digital asset products to experience significant outflows last week, amounting to US$946m.” CoinShares wrote.
As more capital exits Bitcoin, altcoins such as Ethereum (ETH), Solana (SOL), and XRP are poised for bullish inflows. Last week, Ethereum institutional products garnered $57.6 million in net inflows, bringing the yearly total above $14.28 billion.
The altcoin leader posted a positive Q3 2025 and continued into the last quarter. Crypto treasury firms also contributed to the upswing in ETH price and institutional product flows.
Meanwhile, Solana clinched the highest weekly inflows as firms anticipate possible spot ETF approval in the United States. The institutional favorite asset attracted $421 million while XRP saw $43.2 million in the same period.