- Digital asset investment products recorded $1.7 billion in weekly outflows, flipping year-to-date flows negative for 2026, with US products accounting for the majority of redemptions.
- Bitcoin products saw $1.32 billion in weekly withdrawals, while Ethereum products lost $308 million, indicating a broad-based reduction in crypto exposure by institutional investors.
- The price slide below $80,000 pushed a significant portion of US spot Bitcoin ETF buyers into an estimated $7 billion in paper losses.
- The market downturn was exacerbated by the liquidation of almost $2.5 billion worth of leveraged long positions in just 24 hours, forcing exchanges to sell assets into a declining market.
- Analysts suggest the synchronized ETF selling reflects institutions cutting overall crypto exposure amid rising volatility and forced unwinding of leveraged positions, rather than a rotation between assets.
Crypto market loses $1.7 billion in weekly ETF outflows as bitcoin price drops
Feb 4, 2026, 6:28:36 PM UTC(5 hours ago)
Impact: High
Affected Assets
Sources
From:@DeItaone
CRYPTO ASSETS LOSE $1.7 TRILLION IN VALUE SINCE OCTOBER PEAK
Bitcoin fell to around $72,000, its lowest level in 15 months, extending a drop of over 40% from its October peak as global markets sold off.
Analysts say the move reflects a broader risk-off shift, with Bitcoin trading in line with falling tech stocks. ETF flows turned negative again, and doubts are growing about Bitcoin’s role as a safe haven as the crypto market has lost over $460 billion since late January.
