The Bitcoin price is under pressure as recent data from the Digital Asset Fund Flows report indicates a staggering $751 million in outflows from this leading digital asset. Such a significant withdrawal raises concerns about whether institutional investors are exiting the flagship cryptocurrency.
Bitcoin Price Encounters Challenges Amid Huge Outflows
According to CoinShares’ weekly report, the crypto market has experienced a sizeable $795 million in outflows, with Bitcoin accounting for an eye-watering $751 million of that total. This mass withdrawal marks one of the largest single-week outflows of the year, coinciding with a period when Bitcoin’s price has stalled.
James Butterfill, Head of Research at CoinShares, indicated that digital asset investment products have seen cumulative outflows nearing $7.2 billion since early February 2025, effectively negating nearly all year-to-date inflows. This week also marks the third consecutive week of declines, with Bitcoin at the forefront, enduring the most substantial losses among major digital assets.
As of this report, net flows for 2025 have diminished to just $165 million, a significant drop from a multi-billion dollar peak experienced only two months ago. This sharp decline highlights a cautious sentiment among institutional investors, reflecting increasing apprehension in the face of persistent market volatility.
At present, Bitcoin is having difficulty reclaiming previous all-time highs, with recent outflows acting as one of the numerous hurdles preventing the cryptocurrency from achieving a breakout. The road to new all-time highs remains obstructed until these outflows are reversed and the market stabilizes.
Despite the loss of $751 million in outflows, Bitcoin retains a relatively positive stance with $545 million in net year-to-date inflows. However, the magnitude and rapidity of the recent outflows are concerning. Such a large withdrawal from Bitcoin indicates a potential shift in institutional sentiment, whether stemming from profit-taking or macroeconomic uncertainties, suggesting that significant players may be pulling back, at least temporarily.
In addition to Bitcoin, Ethereum recorded $37 million in outflows, while Solana, Aave, and SUI experienced losses of $5.1 million, $0.78 million, and $0.58 million, respectively. Surprisingly, even short Bitcoin products, which are intended to capitalize on market downturns, faced $4.6 million in outflows.
Tariffs And Political Uncertainty Fuel Outflows
A key factor driving the retreat across digital assets is the escalating economic uncertainty triggered by tariff policies, which have negatively impacted investor sentiment. This wave of pessimism began in February when U.S. President Donald Trump announced intentions to impose tariffs on imports from Canada, Mexico, and China.
Nonetheless, a recovery in crypto prices was observed late in the week following Trump’s temporary reversal of the contentious tariffs, offering a brief relief to the market. This policy adjustment contributed to a rise in total Assets Under Management (AUM) across digital assets from a low of $120 billion on April 8 to $130 billion, representing an 8% recovery.
