- Cryptocurrency investment products saw nearly $1 billion in outflows on Thursday, with Bitcoin and Ether funds among the hardest hit.
- Spot Bitcoin ETFs experienced $817.9 million in outflows, marking the largest daily withdrawal since November 2025.
- The decline coincided with broader market weakness, including a 4% drop in Gold and a 10% plunge in Microsoft shares.
- High leverage exposure contributed to the sell-off, with $87.1 million in long positions liquidated on Hyperliquid.
On Thursday, cryptocurrency investment products faced heavy outflows as the total crypto market capitalization fell about 6%. Bitcoin and Ether funds recorded nearly $1 billion in outflows, among the largest of the year so far, according to SoSoValue.
Spot Bitcoin exchange-traded funds led the sell-off, shedding $817.9 million. This exceeded last Wednesday’s $708.7 million outflows and marked the largest daily outflow since November 2025.
The crypto decline coincided with broader market weakness, including a 4% drop in gold after a recent surge above $5,300, according to TradingView data.
Industry observers linked the market slump to fresh tariff threats by US President Donald Trump and concerns over AI-related tech stocks amid Microsoft shares plunging 10%.
Consequently, Bitcoin funds extended losses this week after a series of outflows, including $147.4 million on Tuesday and $19.6 million on Wednesday. By Thursday, cumulative weekly outflows had reached $978 million, pushing Bitcoin ETF flows into negative territory for January.
Meanwhile, altcoin funds extended losses, with spot Ether ETFs logging $155.6 million in outflows while XRP (XRP) funds shed $92.9 million. Solana ETFs saw more modest outflows of $2.2 million.
Total crypto market capitalization stood at about $2.92 trillion, with nearly $200 billion erased since peaking above $3 trillion a day earlier. Alongside Microsoft’s impact, blockchain analytics firm CryptoQuant cited high leverage exposure as a key factor.
CryptoQuant’s analyst Darkfost specifically Binance-Open-Interest-back-up-to-Pr?utm_source=twitter&utm_medium=sns&utm_campaign=quicktake&utm_content=darkfost” rel=”nofollow noopener” target=”_blank” title=”https://cryptoquant.com/insights/quicktake/697bb78f9a2bb639680e03c6-Global-Sell-Off-8-Gold-12-Silver-5-BTC-while-Binance-Open-Interest-back-up-to-Pr?utm_source=twitter&utm_medium=sns&utm_campaign=quicktake&utm_content=darkfost”>pointed to high leverage positions at the decentralized derivatives exchange Hyperliquid, with $87.1 million in long positions wiped out within just a few hours.
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