Immense profit-taking on the United States stock market has carried on to the general crypto markets over the past few weeks, with traditional market-compatible crypto products seeing outflows unprecedented in half a year.
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Latest CoinShares research hints at exchange-traded product (ETP) outflows scorching past $2 billion, with Bitcoin (BTC), Ether (ETH) & Ripple (XRP) related products hit the hardest. Country-wise, Germany has notably bucked this trend by adding $13 million in a week.
XRP, ETH & BTC Mix Defies Broader Bearish Trend
Switzerland, Sweden, Canada & Hong Kong have all contributed tens of millions to the sell-off trend across the globe. For the most part, it’s the American investors who had participated in last week’s humongous sell-off, accounting for $1.975 billion out of roughly $2 billion. As investor sentiment shifts towards risk-off assets, digital assets take the plunge.
Certainly, Bitcoin (BTC) & multiple other speculative assets like the major-cap altcoins, top tech indexes & stocks have tumbled drastically over the past few weeks. However, the multi-asset crypto basket ETPs, including a mix of cryptos with XRP, BTC & ETH, inked $31 million inflows despite the all-around market earthquake.
Altcoins Wiped Out, BTC’s Moves Set The Rules
While this is a great sign in the long run, Glassnode’s stats reveal an unfavorable divergence for altcoins. The TOP 500 altcoins vs. BTC Supply In Profit diagram shows a clear wash-out for the altcoins that are already trading in the ‘capitulation zone’ with just 5% of assets in profit, marking an unprecedented case in crypto’s history.
For some seasoned crypto traders this would serve a buy-in opportunity, but the altcoin market losing dominance against Bitcoin (BTC) raises further questions. Pushing overall dominance above 58%, BTC’s $1.37 billion in ETP outflows last week dictated a broader trend, but when BTC’s price swings high, not all major-caps tend to catch on, creating this long-term divergence.
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People Also Ask:
Last week investors pulled out a massive $2 billion from crypto ETFs/ETPs – the biggest weekly withdrawal since early 2025.
People got nervous because the US Federal Reserve might not cut interest rates in December, plus many big holders decided to take profits after the huge October-November rally.
Bitcoin lost $1.38 billion, Ethereum $689 million, and XRP $15.5 million. Pretty much everything bled except “short-Bitcoin” products that actually made money from the drop.
No. It’s just a sharp but normal pullback after a crazy run-up. Total money in crypto funds is still way higher than a year ago, and some countries (like Germany) even bought more during the dip.
If you’re new, just stay calm and don’t make emotional moves. These $1–2 billion swings happen a few times per year – the market usually recovers when rate-cut news turns positive again.
