Crypto investment funds have now recorded a fifth straight week of net outflows, wiping roughly $4 billion from investor coffers over that span.
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That steady removal of capital has been paired with a sharp fall in trading activity, signaling that many holders are standing on the sidelines rather than buying dips.
Trading Volume Hits Multi-Month Low
According to a CoinShares report published Monday, crypto funds saw $288 million in net outflows last week, bringing the five-week total to roughly $4 billion.
Weekly trading volumes also fell to about $17 billion, the lowest level since mid-2025, highlighting a slowdown in market activity even as prices have recently stabilized.
Fewer transactions were recorded across major investment products, reflecting a quieter stretch for the market compared with earlier periods of heavier trading.
Regional Flows Paint A Split Picture
Reports note the US led withdrawals, while parts of Europe and Canada added fresh money. The US recorded $347 million of outflows, while Europe and Canada together showed net inflows of close to $60 million.
Digital asset investment products recorded US$288M in outflows last week.@Bitcoin remains the key proponent of this negative sentiment, seeing US$215M in outflows. @ethereum saw the second largest outflows totalling US$36.5M. Minor inflows were seen in XRP @Ripple (US$3.5M),… pic.twitter.com/HFWIxVAZgO
— CoinShares (@CoinSharesCo) February 23, 2026
Countries such as Switzerland, Canada, and Germany were among those adding funds. That split shows that not all investors view the market the same way right now. Some see value at lower prices; others are trimming exposure until clearer signs appear.
Bitcoin Remains The Main Focus Of Selling
Bitcoin accounted for the largest single-asset outflows, with about $215 million removed last week. At the same time, instruments that profit from falling prices received renewed interest, with short-Bitcoin products taking in around $5.5 million.
A fair amount of recent liquidations was tied to Bitcoin moves, driven by traders who had large positions and saw prices move against them. Some positions were forced closed. That pushed volatility up in the short term.
Ethereum and a handful of other coins also saw money leave, though a few assets attracted small inflows. XRP, Solana, and Chainlink each gained minor sums relative to the overall outflow.
These were selective bets rather than broad rotations back into risk assets. Investment managers who moved into specific tokens appeared to be making tactical, not broad, commitments.
Sidelined Capital Is Waiting
Reports say much of the market’s strength depends on outside cash returning. Right now, many potential buyers are waiting for clearer signals from the macro side — interest rates, big economic reports, and policy hints from regulators.
Without sustained buying, price bounces are more likely to be brief technical recoveries than full trend changes.
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A Pause More Than A Collapse
This is not a market breakdown. It is a pause, according to analysts. Participation has dropped and that creates a fragile environment. If macro sentiment shifts and more buyers step in, flows could reverse quickly.
Until then, expect choppy moves, low volume, and a market that reacts strongly to each new piece of news.
Featured image from Vecteezy, chart from TradingView