The crypto market is going through a rough patch, with investors pulling out nearly $3 billion in just one week. Even with President Donald Trump’s push for a national crypto reserve, Bitcoin (BTC) is barely managing to stay above $90,000.
Investors Are Cashing Out Big Time
Over the past three weeks, around $3.8 billion has left crypto investment funds. That’s a big shift from earlier this year when the market was on fire, with $29 billion pouring in over 19 weeks.
So, what’s going on? Several things seem to be scaring investors away:
- The recent Bybit hack—Another security breach, another confidence shake-up.
- The Federal Reserve’s cautious tone—Higher interest rates make risky assets like crypto less attractive.
- Profit-taking—Bitcoin has been on a big run, and some traders might be locking in gains before the next move.
This isn’t the first time we’ve seen this happen. In late 2021, after Bitcoin hit $69,000, big investors started selling, leading to a long bear market. Could history be repeating itself?
Bitcoin and Ethereum Take the Biggest Hit
Bitcoin saw the largest outflows, with $2.59 billion pulled out last week. Ethereum (ETH) wasn’t far behind, losing $300 million—its worst weekly drop of 2025 so far.
Other cryptos weren’t spared either:
- Solana (SOL) lost $7.4 million
- Some traders are betting against Bitcoin, with short positions gaining $2.3 million
Not Every Coin Is Bleeding
Interestingly, not all cryptos are feeling the pain. Sui (SUI) had a strong week, gaining $15.5 million, while XRP saw $5 million in inflows—likely because of ongoing speculation about an XRP ETF approval.
Some traders also believe Trump’s national crypto reserve could include XRP, which would give the asset a boost.
Market Sentiment: Fear Is Taking Over
Investor confidence has been shaky for weeks. Before this massive outflow, we already saw:
- $508 million leave the market last week
- $415 million pulled out earlier in the year when inflation data came in higher than expected
Some analysts think macro factors—like inflation fears and Trump’s trade policies—are adding to uncertainty. Others believe it’s just a natural market cycle after months of gains.
Right now, Bitcoin is trading at $93,095, up 8% since Monday, but whether this is a bounce or just a short-term recovery is still up for debate.
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