Crypto investment products faced massive outflows last week, with investors withdrawing $2.9 billion, marking the largest weekly sell-off on record.
Over the past three weeks, total outflows have now reached $3.8 billion.
Bitcoin investment products saw the heaviest losses, with $2.6 billion in outflows. BlackRock’s iShares Bitcoin Trust (IBIT), the largest Bitcoin ETP, recorded a single-week withdrawal of $1.3 billion, the highest since its launch, according to CoinShares.
Despite the broader sell-off, some digital assets bucked the trend:
- Sui (SUI) led inflows with $15.5 million.
- XRP (XRP) also saw positive investment activity.
Meanwhile, CME Bitcoin futures open interest dropped sharply, falling from 170,000 BTC to 140,000 BTC over the past two weeks.
Bitcoin Drops Below $90K Amid Market Uncertainty
Bitcoin saw significant price swings, falling 5% on March 3 to dip below $90,000 before stabilizing. The decline triggered over $150 million in liquidations in four hours, according to CoinGlass.
The sell-off followed initial excitement around Trump’s Crypto Strategic Reserve announcement, which briefly pushed Bitcoin to $95,000 before market pressure set in.
Adding to the uncertainty, analysts pointed to several key factors driving the downturn:
- Investor concerns following the $1.5 billion Bybit hack.
- The Federal Reserve’s hawkish stance on monetary policy.
- Market participants locking in profits after 19 consecutive weeks of inflows.
What’s Next for Bitcoin?
Despite the recent downturn, traders remain focused on key support and resistance levels. Analysts suggest that Bitcoin must hold the 21-week simple moving average (SMA) to maintain a bullish long-term outlook.
As institutional investors reassess their positions, market participants are watching for signals from upcoming economic policy decisions and Trump’s reported “investment announcement” scheduled for March 4.
