The cryptocurrency market has been on a rollercoaster ride this week, with newly imposed tariffs being cited as a major factor in a huge outflow of funds from digital asset investment products. According to the latest data, a total of $795 million was withdrawn from various crypto funds alone last week, marking the third week of successive net outflows.
The report points out that the market negativity, driven by persistent macroeconomic uncertainty and notably the imposition of tariffs, has taken a heavy toll on investor sentiment. The latest outflow puts the total for 2025 at $7.2 billion, basically wiping out the gains since the start of the year.
Bitcoin accounted for the majority of the outflows, with $751 million departing from Bitcoin-exclusive investment products. Despite that, Bitcoin is the only crypto asset in positive balance for the year, with a net inflow of $545 million. What's surprising, however, is even Bitcoin shorting products have seen outflows, which certain analysts interpret as potentially signaling some future recovery.
Altcoins are largely seeing a sell-off, with Ethereum leading the outflows at $37.6 million. Other altcoins such as Solana, Aave, and Sui also saw outflows, which shows greater investor caution of the altcoin sector.
There were a few pockets of strength, however. XRP was an exception with a $3.5 million inflow, while Ondo, Algorand, and Avalanche also saw minor net inflows.
The report also pointed out a modest pick-up in trade flows later in the week, as President Trump temporarily suspended tariffs. This temporary reprieve appeared to restore a degree of confidence to the market, with a resulting 8% rise in overall assets under management (AuM) to $130 billion since the April 8th low.
While the final impact of the tariffs has yet to be seen, the immediate impact has been a sharp cooling of investment in the cryptocurrency marketplace. The market will be keeping a close eye on further developments in tariff policy and their ongoing influence on investor sentiment.
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