Connect with us

Crypto World

Altcoins See Selective Strength Amid $173 Million Crypto Outflows

Published

on

Last Week’s Crypto Outflows by Country

Crypto funds recorded a fourth consecutive week of net outflows, shedding $173 million, as investor caution persisted across major digital assets.

However, the pace of withdrawals has slowed markedly from the heavy selling seen in late January and early February, while select altcoins have continued to attract fresh capital.

Sponsored

Sponsored

Advertisement

Crypto Outflows Persist but Slow from January Peaks

According to the latest weekly fund flows report from CoinShares, cumulative outflows over the past four weeks have reached $3.74 billion, reflecting sustained weak sentiment following earlier market volatility.

While outflows continued, last week’s figure was broadly in line with the previous week’s $187 million decline, suggesting the sharp liquidation phase may be easing.

Earlier in the cycle, digital asset funds experienced much steeper withdrawals, including roughly $1.7 billion in each of the final weeks of January.

Market activity also cooled significantly, with ETF trading volumes dropping to $27 billion, down sharply from the record $63 billion reported the week before.

Advertisement

The decline in turnover suggests investors may be stepping back from aggressive repositioning, even as broader uncertainty persists.

Despite the overall negative flows, sentiment improved slightly toward the end of the week. Softer-than-expected US inflation data helped spark $105 million in inflows on Friday.

“Sentiment improved slightly on Friday following weaker-than-expected CPI data,” wrote James Butterfill, head of research at CoinShares.

This suggests macroeconomic signals continue to play a decisive role in shaping short-term crypto demand.

Sponsored

Advertisement

Sponsored

Regional Divergence Becomes More Pronounced as Bitcoin and Ethereum Lead Withdrawals

One of the most notable trends in the latest data was a widening regional divide. The US accounted for $403 million in outflows. This made it the primary driver of the global decline.

While US investors remain cautious, potentially reflecting macro uncertainty and positioning shifts, institutions in other markets may be viewing the recent price weakness as an opportunity to accumulate.

Last Week’s Crypto Outflows by Country
Last Week’s Crypto Outflows by Country. Source: CoinShares

Meanwhile, the largest digital assets continued to bear the brunt of negative sentiment. Bitcoin investment products saw $133 million in outflows, the weakest performance among major assets.

Sponsored

Advertisement

Sponsored

Interestingly, short Bitcoin products also recorded outflows totaling $15.4 million over the past two weeks.

Crypto Outflows by Asset
Crypto Outflows by Asset. Source: CoinShares Report

Historically, declines in demand for bearish positions have sometimes coincided with periods of market capitulation. Therefore, it may signal that the worst of the selling pressure could be nearing exhaustion.

Ethereum funds also struggled, posting $85.1 million in outflows as investors reduced exposure to the second-largest crypto. Smaller products were not immune either, with Hyperliquid seeing modest withdrawals of around $1 million.

Altcoins Show Signs of Rotation

In contrast to the broader trend, several altcoins continued to attract capital. XRP led inflows at $33.4 million, followed closely by Solana at $31 million, while Chainlink added $1.1 million.

Advertisement

Sponsored

Sponsored

These inflows point to a selective rotation rather than a wholesale exit from the crypto sector. Investors appear to be reallocating toward assets perceived to have stronger narratives or relative momentum, even as exposure to larger-cap tokens declines.

Taken together, the latest data paints a picture of a market still under pressure but stabilizing compared with the intense selling seen earlier in the year.

Advertisement

Crypto outflows remain persistent, yet their reduced scale, coupled with regional inflows and continued interest in certain altcoins, suggests investors are adjusting portfolios rather than abandoning the asset class outright.

Source link

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Crypto World

Ether May Retest $2.5K Soon If This Pattern Plays Out

Published

on

Cryptocurrencies, Ethereum, Markets, Cryptocurrency Exchange, Binance, Price Analysis, Futures, Market Analysis, Altcoin Watch, Ether Price, Liquidity

Ether (ETH) opened the week with a drop below the psychological $2,000 level, placing the altcoin into a 20% loss for February. Still, onchain data shows long-term investors accumulating ETH and rising network usage. 

Now, analysts are examining how ETH’s technical outlook and the derivatives data align with its emerging demand to determine if a prolonged rally above $2,000 is possible.

Key takeaways:

  • Over 2.5 million ETH flowed into accumulation addresses in February, lifting holdings to 26.7 million for 2026.

  • Ethereum weekly transactions hit 17.3 million as the median fees fell to $0.008, a 3,000x drop from 2021 peaks.

  • ETH open interest dropped to $11.2 billion, but leverage remains elevated, with liquidation clusters stacked near $1,909 and $2,200.

Ether accumulation grows despite price drop

Ether accumulation addresses added more than 2.5 million ETH in February, even as the price declined about 20%. Total holdings have risen to 26.7 million ETH, up from 22 million at the beginning of 2026.

Advertisement
Cryptocurrencies, Ethereum, Markets, Cryptocurrency Exchange, Binance, Price Analysis, Futures, Market Analysis, Altcoin Watch, Ether Price, Liquidity
ETH balance on accumulation addresses. Source: CryptoQuant

MN Capital founder Michaël van de Poppe noted that ETH valued against silver is at its lowest level on record, arguing that such difficult market phases often present a long-term accumulation window.

The network demand is also improving alongside improving fundamentals. Over 30% of ETH’s circulating supply (37,228,911 ETH)  is currently staked, reducing the liquid supply. At the same time, weekly transaction count reached an all-time high of 17.3 million, while median fees fell to $0.008.

Cryptocurrencies, Ethereum, Markets, Cryptocurrency Exchange, Binance, Price Analysis, Futures, Market Analysis, Altcoin Watch, Ether Price, Liquidity
Ether total value staked. Source: CryptoQuant

In comparison, head of research at Lisk, Leon Waidmann, noted that the weekly transactions were near 21 million, but the median fees surged above $25 during the 2021 peak. The current structure reflects a higher usage at significantly lower cost.

Related: Harvard endowment reduces stake in Bitcoin ETF, adds Ether exposure

ETH compresses below $2,000 as leveraged traders brace for a breakout

On the four-hour chart, Ether appears to be forming an Adam and Eve bottom, a bullish reversal setup that begins with a sharp, V-shaped low (the “Adam”) followed by a slower, rounded base (the “Eve”).

The structure reflects an initial aggressive sell-off that quickly finds buyers, then a period of gradual accumulation as the volatility contracts. 

Advertisement
Cryptocurrencies, Ethereum, Markets, Cryptocurrency Exchange, Binance, Price Analysis, Futures, Market Analysis, Altcoin Watch, Ether Price, Liquidity
ETH/USDT four-hour chart. Source: Cointelegraph/TradingView

A confirmed breakout above the $2,150 neckline validates the pattern and may open the door toward the $2,473–$2,634 region, based on the measured move projection from the base. The invalidation remains below recent higher lows, with $1,909 acting as a key short-term liquidity level. 

Open interest has declined to $11.2 billion from a $30 billion cycle peak in August 2025. However, the estimated leverage ratio remains elevated at 0.7, only slightly down from 0.77 in January. This suggests leverage is still concentrated in the system, increasing the possibility of a sharp move.

Cryptocurrencies, Ethereum, Markets, Cryptocurrency Exchange, Binance, Price Analysis, Futures, Market Analysis, Altcoin Watch, Ether Price, Liquidity
Percentage of ETH Global accounts long on Binance. Source: Hyblock

Hyblock data shows that 73% of the global accounts are currently long on ETH. Liquidation heatmaps show more than $2 billion in short positions clustered above $2,200, compared with roughly $1 billion in long liquidations stacked near $1,800, highlighting a heavier squeeze risk to the upside.

Although the nearest dense cluster sits at $1,909, where $563 million in longs are vulnerable, which may act as a potential short-term liquidity magnet before the expected uptrend. 

Cryptocurrencies, Ethereum, Markets, Cryptocurrency Exchange, Binance, Price Analysis, Futures, Market Analysis, Altcoin Watch, Ether Price, Liquidity
ETH liquidation map. Source: CoinGlass

Related: Crypto funds log fourth week of outflows at $173M as BTC dips below $70K