Crypto investment funds have now recorded net outflows for the fifth week in a row, wiping around $4 billion from investors’ coffers during that period.
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This steady removal of capital has been accompanied by a sharp decline in trading activity, indicating that many holders are sitting on the sidelines rather than buying dips.
Trading volume reaches its lowest level in several months
According to CoinShares report Published on Monday, crypto funds saw net outflows of $288 million last week, bringing the five-week total to around $4 billion.
Weekly trading volumes also fell to around $17 billion, the lowest level since mid-2025, indicating a slowdown in market activity even as prices have stabilized recently.
Fewer trades were recorded in the main investment products, reflecting a calmer period in the market compared to previous periods of heavier trading.
Regional flows paint a divided picture
Reports indicate the US led the withdrawals, while parts of Europe and Canada added new money. The US recorded outflows of $347 million, while Europe and Canada together recorded net inflows of almost $60 million.
Digital asset investment products recorded outflows of $288 million last week.@Bitcoin remains the main proponent of this negative sentiment, with outflows of $215 million. @ethereum saw the second largest outflows totaling $36.5 million. There were small inflows into XRP @Ripple ($3.5 million),… pic.twitter.com/HFWIxVAZgO
— CoinShares (@CoinSharesCo) February 23, 2026
Countries such as Switzerland, Canada and Germany were among those adding money. This split shows that not all investors currently view the market the same way. Some see value at lower prices; others limit exposure until clearer signs appear.
Bitcoin remains the main focus of selling
Bitcoin were responsible for the largest single asset outflows, with about $215 million removed last week. At the same time, instruments that take advantage of falling prices saw renewed interest, with short Bitcoin products fetching around $5.5 million.
A fair number of recent liquidations have been tied to Bitcoin moves, driven by traders who held large positions and saw prices move against them. Some positions were forcibly closed. That caused an increase in short-term volatility.
Ethereum and a handful of other currencies also lost money, although a few assets attracted small inflows. XRP, Solana and Chainlink each made small amounts relative to total outflows.
These were selective bets rather than broad rotations into risky assets. Investment managers moving into specific tokens appeared to be making tactical, not broad, commitments.
The sidelined capital is waiting
Reports say much of the market’s strength depends on outside cash returns. At this point, many potential buyers are waiting for clearer signals from the macro side: interest rates, major economic reports and policy tips from regulators.
Without sustained buying, price gains are more likely to be a short technical recovery than full trend changes.
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A pause that is more than a collapse
This is not a market disruption. Analysts say it’s a pause. Participation has fallen and that creates a vulnerable environment. If macro sentiment changes and more buyers step in, flows could quickly reverse.
Until then, expect choppy moves, low volume and a market that reacts strongly to each new piece of news.
Featured image from Vecteezychart from TradingView