Key Insights

• Investors have withdrawn $6.4 billion from digital assets over the past five weeks, primarily from U.S. bitcoin ETFs.
• This trend coincides with heightened trade and geopolitical tensions.
• Over the last three months, bitcoin has decreased by 21%, while the broader CoinDesk 20 Index has fallen by nearly 35%.

Global investors are turning away from digital assets as fears regarding geopolitical and economic stability rise. Recently, CoinShares reported a loss of $1.7 billion in digital asset funds just last week, raising the total outflow to $6.4 billion over five weeks. The U.S. bitcoin exchange-traded funds (ETFs) have recorded their longest streak of weekly outflows since their launch in January 2024, with over $5.4 billion withdrawn.

Despite President Donald Trump’s expressed support for cryptocurrencies, including establishing a Bitcoin Strategic Reserve, these efforts have not yet alleviated concerns surrounding trade tensions and financial policies. Bitcoin has seen a significant decline, currently around $83,000, while the CoinDesk 20 Index has also experienced a drop in value during this timeframe.