Bitcoin, Ethereum, and XRP investment products saw $1.73 billion in withdrawals last week, marking the largest exodus since mid-November 2025.
Institutional investors withdrew $1.73 billion from crypto investment products last week, the largest single-week outflow since November 2025.
Crypto investment products experienced a sharp reversal in sentiment, recording $1.73 billion in net outflows for the week ending January 24. This marks the largest weekly withdrawal since mid-November 2025.
Bitcoin led the decline with approximately $1.09 billion in outflows, followed by Ethereum at $630 million. XRP also posted $18.2 million in outflows, following the broader market trend.
The selloff coincides with BTC dropping below $90,000 after reaching $97,000 on January 15. Bitcoin traded around $88,000 on January 26, having erased most of its monthly gains.
The outflows reflect deepening bearish sentiment across the crypto market. The crypto fear and greed index dropped to 29, firmly in fear territory.
Rising uncertainty around a potential US government shutdown, combined with broader risk-off sentiment, triggered over $1 billion in crypto liquidations. Macro headwinds continue to weigh on digital assets as investors reassess risk exposure.
This pullback follows a strong start to 2026, when Bitcoin briefly reclaimed $95,000. The sudden reversal suggests institutions are taking profits amid unclear short-term catalysts.
Key indicators to monitor include whether outflows persist into the coming week and if Bitcoin can defend the $87,000 support level. The US Senate Banking Committee has postponed its scheduled markup of a crypto regulatory bill, adding to regulatory uncertainty.
Meanwhile, the UK's Financial Conduct Authority moved into the final stage of consultations on proposed crypto regulations, potentially providing a clearer framework for European investors.
This is a developing situation. The scale of outflows suggests a meaningful shift in institutional positioning, but whether this represents tactical rebalancing or a longer-term trend remains to be seen.
Wall Street giant Citigroup projects Bitcoin could reach $143,000 within 12 months, citing ETF demand and regulatory tailwinds as key catalysts.
The largest US bank is assessing spot and derivatives trading services as regulatory clarity enables traditional finance to deepen crypto involvement.
Senator Boozman postpones Digital Asset Market Clarity Act from January 15 to final week of January to secure bipartisan support.
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