Investors are fleeing digital assets as risky investments lose their popularity amid growing geopolitical and economic uncertainty.
Globally, digital asset funds lost $1.7 billion last week alone, according to a report from CoinShares, taking the total outflow over five weeks $6.4 billion. In the U.S., bitcoin (BTC) exchange-traded funds (ETFs) logged the longest streak of weekly outflows since their January 2024 debut, with investors pulling more than $5.4 billion over the past five weeks.
While President Donald Trump has shown support for cryptocurrencies, including with the order for the establishment of a Bitcoin Strategic Reserve, that support has so far failed to counteract concerns about tariff-induced trade tensions and monetary policy.
Bitcoin has dropped more than 21% over the last three months to around $83,000, while the broader CoinDesk 20 Index (CD20) has lost around 34.6% of its value over the same period.