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Digital Assets Lose $73B Since October 2025 Highs, CoinShares Finds

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Digital Assets Lose $73B Since October 2025 Highs, CoinShares Finds


Short Bitcoin funds attracted $14.5 million in inflows as investors hedge against falling prices.

Investors pulled $1.7 billion from digital asset investment products this past week. This has reversed year-to-date gains and left a net $1 billion outflow globally. CoinShares stated that the decline reflects weaker investor confidence, influenced by a more hawkish US Federal Reserve Chair, continued selling by crypto whales linked to the four-year cycle, and rising geopolitical risks.

Since October 2025, when prices reached their highs, total assets under management in digital assets have fallen by $73 billion, amidst a sharp drop in market appetite for the sector.

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Bitcoin Leads Massive Outflows

According to the latest edition of CoinShares’ Digital Asset Fund Flows Weekly Report, investor sentiment was broadly negative across digital assets. Bitcoin, for one, experienced $1.32 billion in outflows, Ethereum $308 million, XRP $43.7 million, and Solana $31.7 million. Meanwhile, Sui and Litecoin had smaller exits of $1.2 million and $0.2 million.

Short Bitcoin funds saw inflows of $14.5 million, which raised their year-to-date AuM by 8.1%. Multi-asset funds also saw withdrawals of $13.5 million. Chainlink stood out as an exception after drawing a modest $0.5 million in inflows.

Amid broader outflows, CoinShares found that hype investment products gained $15.5 million, as a result of strong on-chain demand for tokenized precious metals.

Sentiment was mostly negative across regions. The US had $1.65 billion in outflows, with Canada and Sweden seeing $37.3 million and $18.9 million exits. Smaller withdrawals came from the Netherlands, France, and New Zealand. On the other hand, Switzerland and Germany attracted inflows of $11 million and $4.3 million, while Brazil, Australia, and Italy saw minor gains.

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High Demand For Downside Protection

Bitcoin broke below the $80,000 support level and briefly touched $74,500, while ETH also fell under pressure shortly after the announcement of Kevin Warsh as the next US Federal Reserve Chair. The move triggered liquidation of over $2.5 billion in leveraged long positions, worsening sentiment already strained by ongoing ETF outflows. This has left Bitcoin with its fourth consecutive monthly decline, and markets are generally cautious.

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QCP Capital said that $74,500 is an important level because it aligns with the 2025 cycle lows. Options markets indicate that investors remain careful, and there is more demand for downside protection than for upside bets.

However, hedging demand is not as extreme as during prior stress episodes, which could mean that some investors may be positioning for a potential near-term base. QCP observed that while the price appears to be stabilizing, momentum is still weak, and upside is limited, which has left Bitcoin vulnerable to further liquidations.

According to QCP, a drop under $74,000 could drive BTC further down, with the potential to test its previous 2024 trading zone. On the flip side, breaking back above $80,000 may relieve short-term pressure, normalize options markets, and ease volatility. Important factors to watch include institutional accumulation, geopolitical risks, and Fed communications.

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ME Token Slumps After Magic Eden Announces Buybacks, Staking Rewards

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ME Token Slumps After Magic Eden Announces Buybacks, Staking Rewards


The former NFT marketplace said it will allocate revenue to the ME ecosystem, including USDC rewards paid out to stakers.

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Solana (SOL) Plunges Below $100, Bitcoin (BTC) Recovers From 15-Month Low: Market Watch

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BTCUSD Feb 4. Source: TradingView


Meanwhile, HASH and HYPE have declined the most over the past 24 hours after charting impressive gains lately.

Bitcoin’s adverse price actions as of late worsened yesterday when the asset tumbled to its lowest positions since early November 2024 at $73,000 before recovering by a few grand.

Most altcoins followed suit with enhanced volatility, but some, such as SOL, HYPE, and CC, have been hit harder than others.

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BTC’s Latest Rollercoaster

It was just a week ago when the primary cryptocurrency challenged the $90,000 resistance ahead of the first FOMC meeting for the year. After it became official that the Fed won’t cut the rates again, BTC remained sluggish at first but started to decline in the following hours.

The escalating tension in the Middle East was also blamed for another crash that took place on Thursday when bitcoin plunged to $81,000. It bounced off to $84,000 on Friday but tumbled once again on Saturday, this time to under $75,000. Another recovery attempt followed on Monday, only to be rejected at $79,000.

Tuesday brought the latest crash, this time to a 15-month low of $73,000. It has rebounded since then to just over $76,000, but it’s still 3% down on the day. Moreover, it has lost 14% of its value weekly and a whopping 18% monthly.

Its market capitalization has plummeted to $1.525 trillion on CG, while its dominance over the alts has declined to 57.3%.

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BTCUSD Feb 4. Source: TradingView
BTCUSD Feb 4. Source: TradingView

SOL Below $100

Most larger-cap altcoins have felt the consequences of the violent market crash lately. Ethereum went from over $3,000 to $2,100 in the span of a week, before bouncing to $2,280 as of now. BNB is down to $760, while SOL has plummeted to under $100 after a 7% daily decline.

Even the recent high-flyer HYPE has retraced hard daily. The token is down by 11% to $33. CC and ZEC are also deep in the red, while XMR has gained the most from the larger caps.

The cumulative market cap of all crypto assets has seen more than $70 billion erased in a day and is down to $2.65 trillion on CG.

Cryptocurrency Market Overview Feb 4. Source: QuantifyCrypto
Cryptocurrency Market Overview Feb 4. Source: QuantifyCrypto

 

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Pumpfun Unveils Investment Arm and $3 Million Hackathon

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Pumpfun Unveils Investment Arm and $3 Million Hackathon


PUMP rallied as much as 10% but erased its gains as crypto markets dipped.

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Spot Bitcoin ETF AUM Hits Lowest Level Since April 2025

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Spot Bitcoin ETF AUM Hits Lowest Level Since April 2025

Assets in spot Bitcoin (BTC) ETFs slipped below $100 billion on Tuesday following a fresh $272 million in outflows.

According to data from SoSoValue, the move marked the first time spot Bitcoin ETF assets under management have fallen below that level since April 2025, after peaking at about $168 billion in October

The drop came amid a broader crypto market sell-off, with Bitcoin sliding below $74,000 on Tuesday. The global cryptocurrency market capitalization fell from $3.11 trillion to $2.64 trillion over the past week, according to CoinGecko.

Altcoin funds secure modest inflows

The latest outflows from spot Bitcoin ETFs followed a brief rebound in flows on Monday, when the products attracted $562 million in net inflows.

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Still, Bitcoin funds resumed losses on Tuesday, pushing year-to-date outflows to almost $1.3 billion, coming in line with ongoing market volatility.

Spot Bitcoin ETF flows since Jan. 26, 2026. Source: SoSoValue

By contrast, ETFs tracking altcoins such as Ether (ETH), XRP (XRP) and Solana (SOL) recorded modest inflows of $14 million, $19.6 million and $1.2 million, respectively.

Is institutional adoption moving beyond ETFs?

The ongoing sell-off in Bitcoin ETFs comes as BTC trades below the ETF creation cost basis of $84,000, suggesting new ETF shares are being issued at a loss and placing pressure on fund flows.

Market observers say that the slump is unlikely to trigger further mass sell-offs in ETFs.

“My guess is vast majority of assets in spot BTC ETFs stay put regardless,” ETF analyst Nate Geraci wrote on X on Monday.

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Source: Nate Geraci

Thomas Restout, CEO of institutional liquidity provider B2C2, echoed the sentiment, noting that institutional ETF investors are generally resilient. Still, he hinted that a shift toward onchain trading may be underway.

Related: VistaShares launches Treasury ETF with options-based Bitcoin exposure

“The benefit of institutions coming in and buying ETFs is they’re far more resilient. They will sit on their views and positions for longer,” Restout said in a Rulematch Spot On podcast on Monday.

“I think the next level of transformation is institutions actually trading crypto, rather than just using securitized ETFs. We’re expecting the next wave of institutions to be the ones trading the underlying assets directly,” he noted.