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Digital Asset Investment Outflow Extends Into Fifth Week
The exodus comes amid growing economic concerns and geopolitical tensions, despite the Trump administration’s pro-crypto stance.
Updated Mar 17, 2025, 1:04 p.m. Published Mar 17, 2025, 1:03 p.m.
What to know:
- Investors withdrew $6.4 billion from digital assets, mostly U.S. bitcoin ETFs, over the past five weeks.
- The outflows coincide with escalating trade and geopolitical tensions
- Bitcoin has dropped 21% over the last three months while the broader CoinDesk 20 Index retreated nearly 35%.
Investors are fleeing digital assets as risky investments lose their popularity amid growing geopolitical and economic uncertainty.
Globally, digital asset funds lost $1.7 billion last week alone, according to a report from CoinShares, taking the total outflow over five weeks $6.4 billion. In the U.S., exchange-traded funds (ETFs) logged the longest streak of weekly outflows since their January 2024 debut, with investors pulling more than $5.4 billion over the past five weeks.
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While President Donald Trump has shown support for cryptocurrencies, including with the order for the establishment of a Bitcoin Strategic Reserve, that support has so far failed to counteract concerns about tariff-induced trade tensions and monetary policy.
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Bitcoin has dropped more than 21% over the last three months to around $83,000, while the broader CoinDesk 20 Index (CD20) has lost around 34.6% of its value over the same period.
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Spot BTC prices were at times $300 pricier on Coinbase relative to Binance, suggesting the rally may be driven by heavy demand from American investors.
What to know:
- Bitcoin surged towards $100,000 on Wednesday's U.S. trading session, gaining 3.2% in the past 24 hours.
- The rally coincided with significant spot BTC price premium on Coinbase.
- Fed Chair Jerome Powell called bitcoin a competitor to gold during a panel discussion.
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