Global Crypto Market Funds Record First Outflow in 4 Weeks, Here’s Why

Key Insights:

• Major crypto market news: Crypto funds saw first outflow in four weeks.
• Ethereum and Bitcoin led outflows following delays in the US Clarity Act.
• XRP and Solana recorded inflows, with slight interest in Chainlink funds.

In today’s crypto market news, crypto funds recorded their first week of negative flows in four weeks. This signals institutional investors’ outlook on Bitcoin and Ethereum amid uncertainty and volatility.

The top cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), XRP, and Solana (SOL) are climbing higher today. Will crypto prices continue to see downside momentum or a much-needed recovery awaits?

Crypto Market Jitters Amid $952 Million in Net Outflow from Crypto Funds

Crypto market funds saw $952 million in net outflows last week, reported CoinShares on Monday, December 22. The crypto funds recorded first outflows following 3 weeks of consecutive inflows.

These outflows were primarily attributed to delays in the US Clarity Act, which has extended regulatory uncertainty in the crypto market.

The report cited concerns about whales selling their holdings as another reason for the decline in institutional interest. The total assets under management (AuM) dropped back to $176 billion.

The outflows were almost entirely concentrated in the United States, totaling $990 million. This was partially offset by inflows from Canada and Germany, which helped mitigate the overall crypto market jitters.

As per the report, Ethereum led with $555 million in outflows. However, inflows this year have surpassed $12.7 billion, as compared to $5.3 billion last year.

Meanwhile, Bitcoin followed with $460 million in outflows. The report doubts that Bitcoin inflows will surpass last year’s $41.6 billion record, as it currently stands at $27.2 billion.

Inflows in XRP and Solana Resume

In contrast to the outflow in BTC and ETH, Solana continued to attract institutional interest among other cryptoo assets. SOL saw $48.5 million in inflows, but below $65 million in the prior week.

Meanwhile, XRP saw $62.9 million in inflows. Inflows increased from $46.9 million in the earlier week.

This suggests that investors remain selectively supportive of certain digital assets despite the broader negative sentiment.

Chainlink (LINK) also saw a $3.3 million in inflows. However, it dropped from $4.1 in the previous week.

Will Crypto Price Surge Amid Shift in Sentiment in the Options Market?

Matrixport data revealed a shift in sentiment among Bitcoin and Ethereum options traders.  The rebound in delta skews signals that options traders are becoming less bearish.

Bitcoin and Ethereum prices have jumped 1% in the past 24 hours. At the time of writing, BTC price was trading at $89,751 and ETH price was trading above $3,000.

Bitcoin’s 24-hour low and high were $87,613 and $89,859, respectively. Furthermore, trading volume has increased for both top crypto assets over the last 24 hours.

XRP jumped slightly, with the price trading at $1.92 at the time of writing. The 24-hour low and high were $1.90 and $1.94, respectively.

Meanwhile, LINK price wavers near $12, up almost 1.40 over the past 24 hours. Trading volume has increased by 63% over the past 24 hours.