Crypto inflows decline to $270M as Bitcoin outflows rise

Crypto investment inflows fell to $270 million last week, reflecting a sharp contrast to earlier weeks of strong activity.  

According to CoinShares, the decline marks a pullback after year-to-date inflows reached a record $37.3 billion.  

Bitcoin (CRYTO:BTC) saw significant outflows of $457 million during the week, attributed to profit-taking as BTC neared the $100,000 mark.  

“We believe it is profit taking following Bitcoin testing the very psychological level of $100,000,” noted CoinShares’ James Butterfill.

This marks the first major outflows for Bitcoin since early September, following consistent inflows during a post-election rally.  

Inflows surged to $1.98 billion immediately after the elections but have since slowed.  

Analysts suggest macroeconomic trends, such as optimism surrounding a Republican election victory and expectations of a softer Federal Reserve stance, initially drove inflows higher.  

Market experts remain divided on Bitcoin’s near-term outlook.  

Former Wall Street quant Tone Vays disclosed exiting all long positions at $97,800, expressing doubt over BTC sustaining a $100,000 breakout this year.  

“Still think sustaining a $100,000 break this year is unlikely,” Vays said, adding that he might consider buying below $90,000.  

Conversely, Fundstrat’s Tom Lee predicts Bitcoin could reach $250,000 by 2025, though he acknowledges potential short-term setbacks, including a dip to $60,000.  

Author Robert Kiyosaki echoed this sentiment, stating, “Bitcoin is stalled short of $100,000. That means BTC may crash to $60,000. If and when that happens, I will not sell.”  

While Bitcoin faced outflows, Ethereum (CRYPTO:ETH) recorded $634 million in inflows, signaling growing investor confidence. 

Year-to-date inflows for Ethereum stand at $2.2 billion, as investors pivot toward altcoins amid Bitcoin's uncertainty.  

Crypto exchange-traded product (ETP) trading volumes also declined, falling to $22 billion from $34 billion in the prior week, raising concerns about sustained institutional activity in the market.  

At the time of reporting, the Bitcoin (BTC) price was $95,901.15.