Digital asset investment products lost $1.47 billion in one week — the second consecutive week of outflows and the third-largest weekly withdrawal of 2026 — as Iran-related geopolitical risk collided with rising bond yields, a softening stock market and the fading of a technical support structure that had kept Bitcoin at nearly $80,000 for most of the month, according to the latest Digital Asset Fund Flows from CoinShares. report.
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Bitcoin took the brunt. The asset recorded an outflow of $1.315 billion – the largest single-week Bitcoin withdrawal of 2026, surpassing the late January peak – pushing year-to-date inflows down from $3.9 billion the week before, according to CoinShares’ Volume 287 report, authored by James Butterfill. The speed of the turnaround underlines how quickly the cumulative inflow position could shrink in 2026 if risk appetite deteriorates. Two weeks ago that figure was $4.9 billion. It has now lost almost half in fourteen days.
Ethereum followed with an outflow of $222.8 million, largely in line with the previous week. Blockchain stock ETFs also got involved in the sell-off, with a total outflow of $133 million. The US dominated the regional picture with outflows of $1.425 billion – the vast majority of the global total – while Switzerland added $16.2 million, Canada $12.5 million and Hong Kong $12.2 million, the report said. Germany was effectively flat.
BTC's price trends to the upside since April 2026, as seen on the daily chart. Source: BTCUSD on Tradingview
Why Money Left Bitcoin – The Collapse of QCP
The mechanisms behind the outflows are detailed in QCP Capital’s latest Market Color note, which portrays the week’s price action as the product of two converging forces: a technical support structure that expired and a macro backdrop that simultaneously turned hostile.
On the technical side, the long range of dealers – especially in IBIT options – had suppressed volatility and helped anchor Bitcoin near $80,000 for most of May. The expiration of Friday’s options resulted in the unwinding of more than $4 billion in IBIT contracts, removing that floor. According to QCP’s analysis, Bitcoin broke below $78,000 shortly after.
The macro environment that greeted the collapse was brutal. 10-year US Treasury yields are at 4.62% and 30-year 5.14% – new cycle highs. USD/JPY has moved into the 158-159 range and is approaching the 160 level, where fears over Bank of Japan intervention risk and yen carry are historically on the rise. Stocks retreated. Oil prices rose. CPI was running hot. Markets now estimate a 50% to 60% probability that the Fed’s benchmark rate will be 25 basis points higher in January, according to QCP’s estimate – a material shift in interest rate expectations that makes risky assets generally less attractive.
The only bright spot for it
Not everything was moving in the same direction. Nine assets still recorded meaningful inflows of more than $1 million, indicating that progress on CLARITY Act legislation has softened the broader risk exit at the margin, per CoinShares. XRP led the altcoin inflows with $31.8 million, followed by Solana with $7.7 million, Near Protocol with $9 million – notable considering its total assets under management of $74 million – Sui with $2.9 million, and multi-asset products with $4.7 million. The selective nature of altcoin inflows suggests that investors are focusing on specific narratives rather than abandoning crypto entirely.
Crypto market records spike in outflows across its digital investment products. Source: CoinShares
QCP’s near-term outlook is cautious, but not catastrophic. Until there is a clearer tariff resolution or US-Iran headlines emerge, crypto will likely remain within a choke point, the company said. Front-end volatility spiked during the crisis, but is already dissipating – and call overwriters could soon return to current levels. The major scheduled events this week – FOMC minutes on Wednesday, NVIDIA results on the same day and Flash PMIs on Thursday – each have the potential to shift the macro narrative in either direction.
This development marks a pivotal moment for Bitcoin’s near-term price trajectory. Two consecutive weeks of outflows totaling $2.54 billion, arriving just as technical support has faded and macroeconomic headwinds are mounting, is the kind of setup that will test the conviction of institutional investors who came in on the way up – and the next few sessions will determine whether that conviction holds.
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At the time of writing, Bitcoin is trading around $82,000, attempting to stabilize above the $78,000 level it broke last week, as the market awaits the macro catalysts that QCP and CoinShares both identify as the next directional trigger.
Cover image of Grok, BTCUSD chart from Tradingview