Digital assets are losing $73 billion since the October 2025 peak, CoinShares finds

Short Bitcoin funds attracted $14.5 million in inflows as investors hedged against falling prices.

Investors pulled $1.7 billion from digital asset investment products last week. This has reversed gains since the start of the year and led to net outflows of $1 billion globally. CoinShares said the decline reflects weaker investor confidence driven by a more hawkish US Federal Reserve chairman, continued selling by crypto whales associated with the four-year cycle, and rising geopolitical risks.

Since October 2025, when prices peaked, total assets under management in digital assets have fallen by $73 billion, amid a sharp decline in market interest in the sector.

Bitcoin leads to huge outflows

According to the latest edition of CoinShares’ Digital Asset Fund Flows Weekly Report, investor sentiment was generally negative on digital assets. Bitcoin, for example, saw outflows of $1.32 billion, Ethereum $308 million, XRP $43.7 million and Solana $31.7 million. Meanwhile, Sui and Litecoin had smaller exits of $1.2 million and $0.2 million.

Short Bitcoin funds saw inflows of $14.5 million, increasing their assets under management by 8.1% this year. Multi-asset funds also saw withdrawals of $13.5 million. Chainlink stood out as an exception after a modest inflow of $0.5 million.

Amid broader outflows, CoinShares found those hype investment products gained $15.5 million, reflecting strong on-chain demand for tokenized precious metals.

Sentiment was mainly negative across regions. The US had outflows of $1.65 billion, while Canada and Sweden had outflows of $37.3 million and $18.9 million. Smaller recordings came from the Netherlands, France and New Zealand. On the other hand, Switzerland and Germany attracted inflows of $11 million and $4.3 million, while Brazil, Australia and Italy posted small gains.

High demand for protection against disadvantages

Bitcoin broke below the $80,000 support level and briefly reached $74,500, while ETH also came under pressure shortly after the announcement of Kevin Warsh as the next chairman of the US Federal Reserve. The move led to the liquidation of more than $2.5 billion in leveraged long positions, further worsening sentiment already depressed by continued ETF outflows. This has led to Bitcoin falling for the fourth straight month, and markets are generally cautious.

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QCP Capital said that $74,500 is an important level because it aligns with the 2025 cycle lows. Options markets indicate that investors remain cautious and that there is more demand for downside protection than upside bets.

However, hedging demand is not as extreme as during previous stress periods, which could mean some investors are positioning themselves for a potential near-term base. QCP noted that while the price appears to be stabilizing, momentum is still weak and upside is limited, leaving Bitcoin vulnerable to further liquidations.

According to QCP, a drop below $74,000 could drive BTC further down, with the potential to test its previous trading zone of 2024. On the other hand, a break above $80,000 could ease short-term pressure, normalize options markets and reduce volatility. Key factors to watch include institutional accumulation, geopolitical risks and Fed communications.