Bitcoin investment products faced Capital pressure for the third consecutive week, but the rate of decline slowed sharply to $264.4 million, while XRP led altcoin Capital with $63.1 million after more than three weeks of stagnation.
Bitcoin investment products recorded a net Capital of $264.4 million last week, marking the third consecutive week of decline, albeit at a significantly slower pace. Meanwhile, altcoin funds saw their first Capital inflow since mid-January, according to the latest report from CoinShares Digital Asset Fund Flows, indicating a positive shift in investor sentiment.
XRP -led products attracted $63.1 million in net Capital , while Ethereum and Solana funds added $5.3 million and $8.2 million, respectively. Overall, net Capital from crypto asset funds fell sharply to $187 million, compared to $1.695 billion the previous week and $1.73 billion the week before that. James Butterfill, Head of Research at CoinShares, commented that this slowdown is a positive sign, noting that historically, a slowdown in Capital inflows often implies a potential market inflection point.
However, Butterfill cautioned that the current change in direction is not enough to confirm a complete reversal. Signals that could indicate a trend breakdown include easing selling pressure from whales, deep oversold conditions with the RSI falling to 16, and investor sentiment beginning to form the view that the recent weakness presents a buying opportunity.
Market recovers amid Chia sentiment.
The adjustment in net Capital outflows coincides with a rebound in cryptocurrency prices after last week's sharp sell-off . Bitcoin fell to a near 16-month low of $62,822 before recovering to around $70,500, according to CoinGecko data. Currently, the market-leading digital asset is trading around $70,437, down about 44% from its all-time high of over $126,000 set last October, when forced liquidations and whale selling triggered the crypto winter.
Bernstein analyst Gautam Chhugani wrote in a Monday morning note that the current Bitcoin price movement is simply a crisis of confidence, nothing is broken, and no underlying issues will emerge. He argued that, in the context of the booming AI market, Bitcoin and cryptocurrencies are not attractive enough, and that the pessimistic outlook for Bitcoin is currently at its weakest point in history. Chhugani noted that spot ETFs only recorded about 7% net Capital compared to the approximately 50% correction in Bitcoin's price during last week's sell-off.
Despite a slowdown in the rate of Capital outflows, the prolonged Capital have caused total assets under management in crypto funds to fall to $129.8 billion, the lowest level since March 2025 when the Trump administration announced a new round of tariffs. Notably, volume for ETPs reached a record $63.1 billion last week, a stark contrast to the trend in the spot market.
According to 10x Research, volume during the recent downturn was significantly lower than in October, suggesting thinner liquidation and activity being driven more by Derivative rather than broad participation.
Looking ahead, 10x Research remains cautious, citing the pessimistic altcoin pattern since mid-January, warning that most altcoins remain structurally weak. On the Myriad prediction market, users only assign a 10% probability to an altcoin season occurring in Q1.
Sentiment toward Bitcoin is also mixed, with Myriad users estimating a 56% probability that the next significant move will be toward $55,000 rather than $84,000, while 10x Research suggests any rebound below $91,000 is likely to be a counter-trend pullback.
Pessimistic views remain, with Bloomberg Intelligence strategist Mike McGlone reaffirming that Bitcoin could fall to $10,000 due to pressure on the highly speculative asset in a tight environment. Conversely, Lou Kerner – founder of CryptoMondays – reaffirmed his forecast that Bitcoin could reach $1 million by 2031 in a blog post on Quantum Economics.
Butterfill warns of short-term volatility, noting that large price drops often accompany fund defaults or systemic stress, but so far most of these events have yet to materialize.
