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In a dynamic turn of events, the cryptocurrency market has witnessed a notable shift, with Bitcoin experiencing outflows totaling $25 million amidst the heightened volatility spurred by <a href="https://coingape.com/education/bitcoin-spot-etf/" target="_blank" rel="noopener">Spot Bitcoin ETFs</a>. Notably, CoinShares’ latest ‘Digital Asset Fund Flows Weekly Report sheds light on this intriguing trend, revealing a nuanced perspective on the market movements. 
<h2 id="bitcoin-notes-25-mln-outflows">Bitcoin Notes $25 Mln Outflows</h2> 
Digital asset investment products encountered notable outflows last week, amounting to about $21 million. However, beneath this headline figure lies a fascinating revelation – an immense trading volume of $11.8 billion in <a href="https://coingape.com/glossary/bitcoin/" target="_blank" rel="noopener">Bitcoin</a>, marking a sevenfold increase from the typical weekly trading activity observed in 2023. 
However, the largest crypto by market cap, Bitcoin witnessed a weekly outflow of $24.7 million last week, the report showed. 
Notably, this surge in trading activity signifies a pivotal role played by ETFs, contributing to 63% of all Bitcoin volumes on trusted exchanges. In addition, the CoinShares <a rel="nofollow" href="https://blog.coinshares.com/volume-166-digital-asset-fund-flows-weekly-report-3c59276b9833" target="_blank">report</a> emphasizes the divergence in the fortunes of incumbent, higher-cost issuers and newly launched ETFs. 
For instance, the former (Incumbent) witnessed significant setbacks, with $2.9 billion in outflows since the inauguration of spot-based ETFs on January 11, 2024. In contrast, the latter (Newly Issued ETFs) attracted a noteworthy $4.13 billion in inflows, showcasing a shift in investor preference towards cost-effective alternatives. 
Also Read: <a href="https://coingape.com/ethereum-foundation-swaps-1-6-mln-eth-for-dai-amid-120-mln-whale-selloff/" target="_blank" rel="noopener">Ethereum Foundation Swaps $1.6 Mln ETH For DAI Amid $120 Mln Whale Selloff</a> 
<h2 id="regional-dynamics-and-altcoin-struggles">Regional Dynamics and Altcoin Struggles</h2> 
Examining the regional landscape, the US emerged as a hub for <a href="https://coingape.com/glossary/cryptocurrency/" target="_blank" rel="noopener">cryptocurrency</a> inflows, recording $263 million. In contrast, Canada and Europe faced a combined outflow of $297 million. This regional shift suggests a migration of assets to the US, driven by its more competitive fee structures. 
Notably, altcoins, including Ethereum and Solana, faced challenges during this period. Ethereum witnessed outflows of $14 million, while Solana experienced $8.5 million in outflows, underscoring a broader market trend. 
Considering that, several analysts believe that the cryptocurrency landscape is undergoing a transformative phase, shaped by the rising influence of ETFs, shifting investor preferences, and regional dynamics. The market’s response to these factors sets the stage for a dynamic and evolving crypto landscape in the weeks to come. 
Notably, the market has noted a <a href="https://coingape.com/crypto-market-selloff-bitcoin-eth-sol-xrp-retreat-with-100-mln-liquidation-here-why/" target="_blank" rel="noopener">selling pressure</a> lately, due to several macroeconomic factors and other related hurdles. Notably, the <a href="https://coingape.com/glossary/bitcoin/" target="_blank" rel="noopener">Bitcoin price</a> was down 2.08% to $40,862,99 during writing on January 22, while its trading volume over the last 24 hours soared 86% to $18.14 billion. 
On the other hand, the <a href="https://coingape.com/price/ethereum/" target="_blank" rel="noopener">Ethereum price</a> decreased by 3.82% to $2,376.14 during writing, with its trading volume soaring 93% to $9.01 billion. The <a href="https://coingape.com/price/solana/" target="_blank" rel="noopener">Solana price</a> was down around 5% to $88.73. 
Also Read: <a href="https://coingape.com/bitmex-arthur-hayes-predicts-bitcoin-btc-price-dump-below-40000/" target="_blank" rel="noopener">BitMEX’s Arthur Hayes Predicts Bitcoin (BTC) Price Dump Below $40,000</a> 
The post <a href="https://coingape.com/breaking-bitcoin-notes-25-mln-outflows-amid-etf-led-crypto-market-volatility/">Breaking: Bitcoin Notes $25 Mln Outflows Amid ETF-Led Crypto Market Volatility</a> appeared first on <a href="https://coingape.com">CoinGape</a>.

Breaking: Bitcoin Notes $25 Mln Outflows Amid ETF-Led Crypto Market Volatility

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