Digital Asset Values Decline by $73 Billion Since October 2025, Reports CoinShares
Investors show caution as large withdrawals impact the digital asset market, driven by various economic and geopolitical factors.
Investors withdrew $1.7 billion from digital asset investment products last week, contributing to a global outflow of $1 billion, reversing gains made earlier in the year. This decline indicates diminishing investor confidence, influenced by a more hawkish stance from the US Federal Reserve, persistent selling from crypto whales, and increasing geopolitical risks.
Since reaching highs in October 2025, total assets under management in digital assets have diminished by $73 billion, signaling a significant drop in market interest.
Bitcoin Leads Massive Withdrawals
According to CoinShares’ recent Digital Asset Fund Flows Weekly Report, overall sentiment towards digital assets remains weak. Bitcoin alone saw $1.32 billion in outflows, while Ethereum, XRP, and Solana also experienced substantial withdrawals. In contrast, short Bitcoin funds saw inflows of $14.5 million, a sign that some investors are hedging against falling prices, bringing their year-to-date assets under management up by 8.1%.
During this trend, CoinShares noted that products linked to high levels of investor interest attracted $15.5 million, buoyed by demand for tokenized precious metals.
Geographically, the United States faced the largest outflows of $1.65 billion, with Canada and Sweden following with respective withdrawals of $37.3 million and $18.9 million. However, countries like Switzerland and Germany enjoyed some inflows, suggesting uneven regional dynamics.
High Demand For Downside Protection
Bitcoin briefly fell below the $80,000 support level and reached $74,500, influenced by the appointment of Kevin Warsh as the new US Federal Reserve Chair. This news triggered liquidation of over $2.5 billion in leveraged long positions, compounding the negative sentiment already present due to ongoing outflows from Exchange-Traded Funds (ETFs).
With this pattern, Bitcoin has now recorded its fourth consecutive month of declines, leaving investors generally cautious about the market’s future direction. According to QCP Capital, $74,500 represents a critical support level, indicating the potential for further downside, while a return to above $80,000 may ease immediate pressures.
