Massive Digital Asset Outflows Shake Crypto Markets

Investors are rapidly fleeing digital assets amid rising geopolitical tensions and economic uncertainty, with global funds shedding $1.7 billion in one week and totaling $6.4 billion over five weeks. In the U.S., Bitcoin ETFs have experienced their longest streak of weekly outflows since their January 2024 debut, with more than $5.4 billion pulled from the market. Despite some political backing—most notably from former President Donald Trump, who has advocated for a Bitcoin Strategic Reserve—such supportive signals have so far been unable to counterbalance the broader market concerns, as Bitcoin’s price has dropped over 21% in the last three months. The situation reflects a market caught between bearish technical signals and limited positive political endorsements, leaving investors cautious about both short-term volatility and long-term growth potential.