Cryptocurrency investment products faced significant capital outflows on Thursday, with the total market capitalization of cryptocurrencies falling by around 6%.
Bitcoin 
BTCUSD and the ether 
ETHUSD funds saw nearly $1 billion in outflows, among the largest of the year so far, according to SoSoValue.
Spot Bitcoin exchange-traded funds (ETFs) led the sell-off, losing $817.9 million, surpassing last Wednesday’s outflows of $708.7 million and marking the largest daily outflow since November 2025.
The crypto’s decline coincided with broader market weakness, including a 4% decline in gold after a recent rise above $5,300, according to TradingView data.
Industry observers linked the market slide to new tariff threats from US President Donald Trump and concerns about AI-related technology stocks, as Microsoft shares plunged 10%.
January flows turn negative after $1 billion in capital outflows
Bitcoin funds extended their losses this week after a series of outflows, including $147.4 million on Tuesday and $19.6 million on Wednesday.
As of Thursday, cumulative weekly outflows had reached $978 million, pushing Bitcoin ETF flows into negative territory for January after another $1 billion in outflows last week.
Overall, spot Bitcoin ETFs have seen about $1.1 billion in net outflows so far this month, according to data from SoSoValue.
Despite the sell-off, Bitcoin ETFs remain a significant part of the market. With $107.65 billion in assets under management (AUM), they represent approximately 6.5% of Bitcoin’s total market capitalization, or approximately $1.65 trillion.
Altcoin funds extend losses, with outflows to ETH and XRP
Negative sentiment persisted across altcoin investment products, with Ether spot ETFs seeing $155.6 million in outflows, while XRP (XRP) funds lost $92.9 million.
Solana ETFs (SOL) saw more modest outflows of $2.2 million, following inflows of around $10 million earlier in the week.
With $16.75 billion in assets under management, Ether ETFs represent approximately 5% of the asset’s market capitalization, or approximately $330 billion.
According to an update from CoinShares, the total assets under management of crypto exchange-traded products (ETPs) stood at $178 billion at the end of last week, or 5.7% of the total market capitalization.
At the time of writing, the total crypto market cap stood at around $2.92 trillion, having peaked at over $3 trillion a day earlier.
Alongside the fall in Microsoft shares, which impacted the market sell-off, blockchain analytics firm CryptoQuant cited exposure to high leverage as a key factor in the crypto slowdown.
CryptoQuant analyst Darkfost specifically highlighted high leverage positions on decentralized derivatives exchange Hyperliquid, with $87.1 million in long positions wiped out in just a few hours.
