Crypto Markets Take a Breather: Are We Witnessing the Calm Before the Storm?

by

It appears that the intrepid adventurers of the crypto world have decided to take a breather this week. Yes, dear reader, the influx of capital has turned into a gentle trickle, akin to a chatty aunt who has finally run out of tales and is now simply sipping her tea in reflective silence. The flood of withdrawals has slowed considerably, and as the price of our beloved digital coins finds itself on firmer ground, one can almost hear the collective sigh of relief from investors.

Record Trading Activity

According to the esteemed CoinShares – which, let’s face it, sounds like a posh club you’d find in a Wodehouse novel – our exchange-traded products have had a week to remember, logging a staggering $63 billion in trading volume. That’s right, higher than last October’s shindig when everyone seemed to have more money than sense!

Now, while we had a high turnover of transactions, there was also a spot of net selling going on. James Butterfill, the head honcho of research at CoinShares (he probably wears a monocle), mentioned that a subtle shift in the pace of withdrawals might reveal more about investor sentiments than the actual figures fluffing about.

Market aficionados took this as a hint that perhaps, just perhaps, the mood of our dear investors was beginning to warm up after what felt like a never-ending winter of discontent.

Bitcoin Takes The Brunt

Alas, poor Bitcoin! The noble steed of the crypto realm found itself taking the brunt of the withdrawals. Reports indicate that Bitcoin funds saw a staggering $264 million slip through their fingers faster than a butler with a broken tray. Spot Bitcoin ETFs took a hit too, accounting for approximately $318 million of that exodus, according to the ever-reliable SoSoValue data.

At one point, the token’s price had a fleeting dalliance with the $60,000 mark on Coinbase, marking its lowest point since November 2024. One can only imagine the frowning faces of those who had bet their last biscuit on its rise.

Altcoins Attract Some Fresh Capital

In a delightful twist that could easily be mistaken for an unexpected plot development in one of Bertie Wooster’s escapades, XRP led the charge with inflows totaling a sprightly $63 million. Meanwhile, Ether and Solana were like the quiet students in the back row, managing to attract a modest $5.3 million and $8.2 million respectively.

This rather curious mix of inflows suggests that some investors are doing a bit of financial pruning, trimming their hefty Bitcoin positions and dabbling in smaller, shinier alternatives. Quite the adventurous spirit, wouldn’t you say? This behavior is evident even as the overall assets under management have taken a slight nosedive.

Crypto AUM And Year-To-Date Flows

By the week’s end, global crypto ETP assets had fallen to around $130 billion, the lowest figure since March 2025. Bitcoin ETP AUM stood at a respectable yet sobering $102.7 billion, whilst ETF totals dipped below the $90 billion mark. After three consecutive weeks of withdrawals, crypto ETPs have shed roughly $1.2 billion year-to-date, compared to the nearly $2 billion pulled from Bitcoin ETFs over the same period. Oh, what a tangled web we weave!

Industry Moves Continue

But fret not! The industry remains as lively as ever, adding new product filings like a cat adding to its collection of misplaced knick-knacks. Reports indicate that 21Shares has gallantly filed with the US Securities and Exchange Commission for an ETF linked to Ondo, revealing that even in these cooling times, issuers believe there’s still demand for a range of crypto tools. Quite the optimistic bunch, I must say!

Of course, one cannot ignore the political backdrop, as markets remain as sensitive as a soufflé around comments from US political figures, including none other than President Donald Trump, alongside regulatory discussions that could either whet or dull investor appetites. Oh, the drama!

Read More

2026-02-10 15:11