Crypto Market Records $2.9B Weekly Outflows Amid Fed Policy and Bybit Hack Concerns

**Crypto Market Faces Sustained Selling Pressure as Outflows Hit Record Highs**

The cryptocurrency market continues to grapple with significant selling pressure, with digital asset investment products recording their largest weekly outflows. **Bitcoin (BTC)** is barely holding above the psychological $90,000 level despite former U.S. President Donald Trump’s pro-crypto reserve policy.

**Record-Breaking Crypto Outflows**
Last week, crypto outflows surged to $2.9 billion, pushing the three-week total to $3.8 billion. This marks the third consecutive week of capital exiting the sector, sharply contrasting the previous 19-week inflow streak that saw $29 billion enter the market. A recent CoinShares report links the negative sentiment to factors like the **Bybit exchange hack**, the Federal Reserve’s hawkish stance, and broader macroeconomic uncertainties.

*“We believe several factors contributed to this trend, including the recent Bybit security breach, a more aggressive Federal Reserve, and the culmination of the prior $29 billion inflow streak. These elements likely triggered profit-taking and weakened confidence in the asset class,”* the report noted.

The Bybit hack, which resulted in millions stolen, has shaken investor trust ?, reigniting fears about security vulnerabilities in crypto platforms. Meanwhile, the Fed’s cautious comments on inflation and U.S. GDP growth have fueled market-wide uncertainty, dampening risk appetite.

**Bitcoin and Altcoins Bear the Brunt**
Bitcoin led the downturn, experiencing **$2.59 billion in outflows** last week. Ethereum also faced heavy losses, recording its worst weekly outflow at **$300 million**. Major altcoins like Solana followed suit, shedding $7.4 million.

However, short Bitcoin positions saw minor inflows of $2.3 million, indicating some investors are betting on further declines.

**Silver Linings: Inflows for Sui and XRP**
Despite the broader pessimism, a few assets bucked the trend. **Sui** emerged as the top performer, attracting $15.5 million in inflows, while **XRP** saw $5 million流入. These gains suggest select projects continue to draw investor interest even amid market turbulence.

XRP’s positive sentiment stems partly from growing anticipation of a U.S. SEC decision on an **XRP ETF**. With deadlines for ETF approvals or rejections approaching, optimism about regulatory clarity persists. Trump’s proposed crypto reserve policy, potentially including XRP, could further boost its outlook.

**Macro Factors Fuel the Sell-Off**
The recent outflow wave follows a troubling pattern. The previous week saw $508 million exit the market, amplifying investor anxiety. Earlier, hawkish Fed rhetoric and concerning Consumer Price Index (CPI) data triggered 2024’s first major crypto outflows at $415 million. Analysts argue macroeconomic headwindsâ€"such as inflation fears and Trump’s proposed tariffsâ€"are key drivers, making riskier assets like crypto less appealing.

The **Crypto Fear and Greed Index** reflects this sentiment, hovering in “fear” territory. However, some analysts suggest structural shifts, like cash-and-carry trading strategies, may also explain Bitcoin’s volatility.

**Bitcoin’s Current Standing**
As of writing, Bitcoin trades at **$93,095**, up over 8% since Monday’s session open. While this rebound offers short-term relief, the market remains on edge as macroeconomic and regulatory uncertainties linger ?.

*Image: CoinShares, CoinMarketCap*