Investors are abandoning digital assets as riskier investments lose their allure amidst escalating geopolitical and economic turmoil.
According to a recent report, digital asset funds experienced a staggering loss of $1.7 billion just last week, contributing to a total outflow of $6.4 billion over the last five weeks. In the United States, bitcoin (BTC) exchange-traded funds (ETFs) have recorded the longest period of weekly outflows since their launch in January 2024, with over $5.4 billion withdrawn during this time frame.
Although former President Donald Trump has voiced support for cryptocurrencies, including a directive to create a Bitcoin Strategic Reserve, this backing has not alleviated concerns about trade tensions driven by tariffs and monetary policy disruptions.
Bitcoin’s value has plummeted by more than 21% in the last three months, hovering around $83,000, while the broader CoinDesk 20 Index has seen a decline of approximately 34.6% in the same span.