Investors yanking billions from crypto funds — bet against Bitcoin as the selling snowballs
Investors pulled $1.67 billion out of crypto funds last week, making it the second-biggest exodus of the year. Bitcoin funds alone have bled nearly $3 billion over just 10 days, and now year-to-date flows have flipped negative.
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When large crypto funds experience sustained outflows, fund managers are forced to sell the underlying Bitcoin to meet redemptions, which pushes the price down further. Right now we're seeing the second-largest weekly pullback of the year, with 10 straight days of Bitcoin fund outflows totaling nearly $3 billion. US-based funds are driving the selling, and altcoin participation is collapsing too — a sign that the entire crypto market is losing institutional support, not just Bitcoin. Historically, when weekly outflows exceed $1 billion, Bitcoin tends to drop another 8-12% over the following two weeks.