The last week of March (23-24) was not good for the cryptocurrency investment product. According to a weekly report from CoinShares, digital asset funds saw their first outflows in five weeks, worth $414 million.
This has more to do with investor sentiments and price action.
Escalating global tensions involving the United States and Iran, accompanied by high inflation and growing expectations around upcoming Federal Reserve meetings, are the main reasons for this change.
Due to these political and economic developments, total assets under management (AuM) decreased to $129 billion. If we look closely, these levels were already reached in early February and April 2025, when volatility was high due to changing pricing policies.
Last week’s winners and losers
That said, during this outflow, Ethereum (ETH) was hit the hardest, seeing outflows worth $222 million. This caused year-to-date cash outflows to fall further to $273 million.
Well, this decline could be due to the continued uncertainty surrounding the CLARITY Act. Meanwhile, the ETH price has also been volatile as it faced a 2.48% decline last week.
Interestingly, Bitcoin (BTC) remains strong, but there is still room for caution. The leading cryptocurrency saw outflows worth $194 million last week.
However, if you look at its year-to-date data, its net inflow stands at $964 million. This happened as the Bitcoin price saw a weekly decline of 3.48%.
Needless to say, Solana (SOL) was no exception as it also saw $12.3 million in outflows as its price fell 5.97% last week.
Interestingly, Ripple’s XRP was the only one to see inflows worth $15.8 million. However, its price has reflected the broader market downturn, falling 4.68% in the past week.
So, XRP was the winner among digital asset funds last week, while ETH was the loser.
Are on-chain metrics favorable?
This sentiment was further confirmed by Santiment’s active address metric, in which Bitcoin and Ethereum had both seen a decline in the aforementioned metric by the end of March.
This suggests that only a few people were invested in the network compared to the high activity seen in early March.
Meanwhile, Solana’s social volume has also declined, meaning fewer people are talking about the altcoin.
Finally, even though XRP emerged victorious, its network activity suggests that caution remains in order due to a sharp drop in active addresses in late March.
The United States faces the most turbulent week
Today, while the United States recorded maximum capital outflows worth $454 million, Switzerland recorded capital outflows of $4 million. While Canada and Germany recorded capital inflows worth $15.9 million and $21.2 million respectively.
However, as we approach the end of March and March 30 is the first day of a new week, the market picks up. The total crypto market cap is back in bullish hands, trading at $2.34 trillion at press time.
Yet, despite this rise, investors should not be fooled by short-term booms, since even last week, $635 million had flowed in just before the Fed meeting and created optimism in the market.
However, as soon as the meeting ended, $405 million was withdrawn from the market, leaving investors in shock. Therefore, until the situation calms down globally, short-term prices are not a clear signal for long-term market forecasts.
Final summary
- The shift from entries to exits suggests there is a lot of FUD in the market and investors are positioning their bets cautiously.
- Bitcoin is holding strong, but XRP stealing the show shows that investors are no longer betting just on Bitcoin.
