Crypto outflows totaled $876 million last week, completing a successive streak of negative flows in the previous four weeks.

This continued sell-off has resulted in cumulative outflows of $4.75 billion over the past month, significantly reducing the year-to-date inflows to $2.6 billion. Resultantly, total assets under management (AuM) have declined by $39 billion from their peak, now standing at $142 billion—the lowest level since mid-November 2024.

Crypto Outflows Reach $876 Million

The latest CoinShares report indicates that US investors primarily drove the outflows, withdrawing $922 million from digital asset investment products. This bearish sentiment in the US contrasted with other regions, where investors saw the recent market pullback as a buying opportunity.

Meanwhile, Bitcoin remained the primary focus of crypto outflows last week. According to the report, investors pulled $756 million from BTC investment products over the past week. Notably, short-Bitcoin products—designed to profit from price declines—also saw outflows of $19.8 million, the largest since December 2024.

This suggests that some investors may be nearing a point of capitulation in their Bitcoin investments, closing their short positions as uncertainty looms.

Notwithstanding, last week’s crypto outflows marked another significant decline following prior weeks of sustained withdrawals. In the first week of March, digital asset investment products saw record-breaking outflows of $2.9 billion. As BeInCrypto reported, this was fueled by weak investor sentiment and heightened market fear.

This had come on the heels of $508 million in outflows the previous week, amid investor caution, and $415 million in withdrawals before that, following the Federal Reserve’s hawkish rhetoric and concerns over inflation.

The Federal Reserve’s stance on monetary policy has shaped investor behavior in recent months. As inflation exceeds expectations, the Fed has signaled that interest rates may remain elevated for an extended period, reducing liquidity in financial markets and weighing on risk assets like crypto.

“We do not need to be in a hurry, and are well positioned to wait for greater clarity,” Fed chair Jerome Powell stated last week.

With four straight weeks of outflows and persistent macroeconomic headwinds, the crypto market remains under pressure. While certain assets like Solana (SOL) and XRP continue to attract inflows, the overall sentiment remains bearish, particularly among US investors.

If market conditions fail to improve, further outflows could follow in the coming weeks, reinforcing the cautious approach among investors.

Bitcoin and Ethereum ETFs Reflect Bearish Sentiment

The negative sentiment extended beyond Bitcoin, affecting blockchain-related equity exchange-traded products (ETPs). CoinShares’ latest report indicates outflows of $48 million during the same period for these financial instruments.

This decline reflects a broader risk-off sentiment, with investors exercising caution across the digital asset sector. It aligns with a recent BeInCrypto report, which showed that Bitcoin ETFs (exchange-traded funds) recorded four weeks of net outflows surpassing $4.5 billion.

Similarly, Ethereum ETFs continued their negative trend, logging a second consecutive week of net outflows. These negative flows come despite anticipation of last week’s White House Crypto Summit. The outflows suggest macroeconomic concerns and strategic market positioning overshadowed the event’s impact.

The general sentiment is that Trump’s tariffs cause the sour sentiment and weaken investor confidence. However, some crypto analysts hold different opinions, ascribing outflows from crypto investment products to hedge funds’ trading strategies.

“…hedge funds don’t care about Bitcoin. They were farming low-risk yield. Now that the trade is dead, they’re pulling liquidity—leaving the market in free fall…This is a classic case of liquidity games. ETFs didn’t just bring in long-term holders—they brought in hedge funds running short-term arbitrage,” crypto analyst Kyle Chassé explained.

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Jeff Park, Head of Alpha Strategies at Bitwise, asserted on Sunday, March 9, that US President Donald Trump will hold off on further Bitcoin purchases until it reaches a price close to $60,000. Park’s remarks, shared via his official account on X, were made against the backdrop of growing speculation around so-called “budget-neutral” methods the administration might use to acquire additional BTC for the recently established US Strategic Bitcoin Reserve.

Why Trump Needs Bitcoin To Drop First

On March 6, 2025, President Trump issued an Executive Order creating the Strategic Bitcoin Reserve, positioning the United States to maintain a leading role in the digital asset space. The administration confirmed that it already controls roughly 200,000 BTC—valued at around $17 billion at current prices—seized primarily through criminal and civil asset forfeiture proceedings – pending an audit. While the Executive Order prohibits selling Bitcoin within the reserve, it directs the Secretaries of the Treasury and Commerce to study “budget-neutral” ways of accumulating additional BTC in the future, ensuring no extra cost to taxpayers.

Jeff Park’s perspective cuts through the standard market commentary, focusing instead on the political realities that, he believes, heavily influence any presidential decision to buy BTC. In one of his posts, Park writes: “I’m going to let you in on a little secret from my primary field experience on how the BTC pitch works… I know one thing better about institutions than almost anyone else: public officials almost never buy bitcoin on trend/momentum and certainly not at the highs. The reason is simple – they don’t want to get fired when the inevitable drawdown hits or worse, ruin their reputation in the public domain.”

He goes on to argue that political figures, especially one as scrutinized as the US President, face an asymmetric risk profile. The fallout from buying at a higher price—only to see the market correct—can be devastating from a public-relations standpoint. Park surmises that the incentives for officials shift dramatically when BTC dips to more attractive levels.

He notes: “Can you imagine the headlines that will come for Trump if he buys bitcoin at $100k and it goes to $70k? On the positive side, if BTC gets to very cheap levels, the incentives for politicians and sovereigns to buy will increase… It is always +EV for the incentive calculation of an executive branch (which must win elections) to wait for BTC to get to $60k and buy and take credit.”

Park stresses that while a strategic reserve might be intended as a long-term store of value, public officials seek to avoid backlash in the event of immediate downside price volatility. This underlying political pressure, he contends, makes them less likely to make “high-risk” moves—especially ones that might expose them to questions about accountability.

The newly formed Strategic Bitcoin Reserve, often branded by the administration as a “digital Fort Knox,” is explicitly designed to remain untouched over the long haul. White House Crypto and AI Czar David Sacks has likened it to “a 21st-century bulwark of national financial security,” underscoring the administration’s ambitions for American cryptocurrency leadership.

However, Park argues that certain conditions must be met for a reserve program to gain genuine traction. Among them are “programmatic buying vs discretionary ‘studies,’” shared decision-making (to distribute accountability), and an element of permanence—either through legislative safeguards or authoritative action undertaken behind closed doors.

Park’s admiration for public pension Chief Investment Officers who have proactively incorporated Bitcoin also highlights the contrast in decision-making timelines: “This is at the core why I give so much RESPECT to the public pension CIOs that have bought BTC or invested in crypto strategies. They are simply true patriots – committed to long-term thinking for the benefit of all against the potential privatized loss of one’s self. Heroes.”

His applause underscores how these executives, unlike politicians seeking reelection or mindful of wide public scrutiny, often have more leeway to invest for the long haul, provided they have fiduciary guardrails in place.

At press time, BTC traded at $82,389.

Featured image created with DALL.E, chart from TradingView.com

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The Bitcoin (BTC) market is showing an extended sideways movement with no significant price action over the past day. Notably, the premier cryptocurrency has lost all market gains from its sudden 11% price surge from last week returning to previous consolidation levels around $86,000. According to popular crypto analyst Burak Kesmeci, Bitcoin is now set between two important price levels wielding sufficient potential for a substantial price swing.

Bitcoin Faces Make-Or-Break At $84k And $87k Liquidation Zones

Using a liquidation heatmap, Burak Kesmeci has highlighted two critical price levels that could be influential on Bitcoin’s next move. Generally, a liquidation heatmap visually represents the levels where leveraged positions, both long and short, are at risk of liquidation. The presence of dense clusters indicates that much liquidity is concentrated at a price, meaning many stop losses and liquidation orders are stacked there.

Regions with these massive liquidity often attract price movements as market makers and institutional traders tend to target these liquidity pockets to trigger liquidations thereby allowing them to buy at a discount or sell at a premium. According to Burak Kesmeci, the BTC 24-hour liquidation heatmap from CoinGlass suggests the flagship crypto asset is now between $84,849 and $87,043 representing two key price points crucial to its move.

Based on the analysis presented, $87,043 is serving as resistance suggesting that a price break above this level could trigger a short squeeze as short traders are forced to buy back their positions at higher prices contributing to the demand for a price rally. In this bullish case, BTC could rise to around $90,000 but will require strong buying pressure to push to higher price targets at $94,000 and $99,000.

Meanwhile, the $84,849 price region presents a crucial support zone that a price fall below which would cause the liquidation of a significant amount of long positions thus inducing a substantial selling pressure. If this projection occurs, BTC could find immediate support around $84,000 However, a potential dip to lower levels such as $83,000 or $80,000 may be feasible.

Bitcoin Price Overview

At the time of writing, Bitcoin is trading at $86,389 reflecting a minor 0.11% gain in the past day and a 0.76% gain in the last seven days. However, the premier cryptocurrency is down by 10.84% in the last month leaving most new market entrants in a deep loss.

Meanwhile, the BTC market trading market volume has crashed by 72.39% in the past day indicating a fall in market participation. While the liquidation heatmap analysis presented by Burak Kesmeci shows two likely pathways, investors should also note Bitcoin could remain range-bound between both liquidation zones barring the introduction of a significant market catalyst.

Featured image from Investopedia, chart from Tradingview

Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.