While the recovery trend seen in cryptocurrency markets in recent weeks has given way to renewed selling pressure, the latest CoinShares report clearly reveals the divergence, especially in the altcoin sector. While strong outflows were observed in both Bitcoin and Ethereum, the continuation of selective inflows in some altcoins is noteworthy.
According to CoinShares and SoSoValue data, a total of $414 million flowed out of global digital asset investment products in the week ending March 27. This data indicates the end of the inflow series that had continued for the past five weeks. During the same period, a net outflow of $296 million occurred from US spot Bitcoin ETFs.
According to the report, this negative picture is largely due to macroeconomic developments. The prolonged US-Iran tension and the shift from expectations of a Fed interest rate cut to the possibility of a rate hike have weakened investors' risk appetite. This has accelerated outflows, particularly from institutional investment instruments.
Bitcoin and Ethereum at the center of selling pressure
When the asset-based distribution is examined, Bitcoin and Ethereum are among the areas where selling pressure is felt most intensely. Bitcoin investment products experienced a weekly outflow of $194 million, but still maintained a net inflow of $964 million since the beginning of the year. This suggests that despite weakening demand in the short term, long-term confidence persists.
The picture is weaker for Ethereum. With a weekly outflow of $222 million, this asset experienced the largest loss. Thus, Ethereum's total inflow since the beginning of the year has fallen to -$273 million, marking one of the weakest performances among major assets. The report emphasizes that this situation may be linked to regulatory uncertainties and especially developments in the US.
Altcoin divergence: XRP positive, Solana weak
The altcoin side presents a more fragmented picture. According to CoinShares data, XRP was one of the rare assets that showed positive divergence with a weekly inflow of $15.8 million. This indicates that institutional investors continue their selective interest in certain altcoins. In contrast, Solana saw an outflow of $12.3 million. This reveals that high-beta altcoins face stronger selling pressure during periods of risk aversion. The continued outflows from multi-asset funds support the idea that investors are generally cautious in the crypto asset class. Smaller altcoins, however, are showing limited but noteworthy movements. Small-scale inflows are seen in projects like Chainlink and Stellar, indicating that investors are taking more selective positions rather than exiting the market entirely. Indeed, in previous weeks, a more volatile picture was seen, with altcoins like Solana and Chainlink attracting inflows, while XRP experienced occasional outflows. On the other hand, the $4 million inflow into "short Bitcoin" products shows that disagreements about the market's direction persist, and some investors are taking positions expecting a decline.
US at the center of outflows, Europe looking for opportunities
Regional data also presents a striking picture. The US accounts for almost all of the negative flows with $445 million in outflows; while countries like Germany and Canada see inflows of $21.2 million and $15.9 million respectively. This reveals that some investors are viewing the declines as opportunities to "buy at the bottom." Total assets under management (AuM) fell to $129 billion, returning to levels seen at the beginning of February. This decline indicates that the market has returned to risk-aversion mode in the short term.
