- Cryptocurrency market sentiment has declined amid capital outflows.

Demand for digital assets has steadily decreased, reflecting ongoing sell-offs across markets in general. This shift is clearly illustrated by the fear and greed index in the digital currency market, which plummeted sharply to 28 points in the fear zone on Monday, compared to an average of 48 points in the neutral zone recorded last week. Increasing risk aversion could further weaken digital assets, potentially turning the situation from neutral to sharply bearish.

Cryptocurrency Fear and Greed Index | Source: Alternative

Institutional investors have shown reluctance to invest by increasing withdrawals from spot exchange-traded funds. U.S.-listed Bitcoin ETFs experienced total outflows of $1 billion last week, the highest since late January.

Despite the outflows, cumulative inflows remain positive at $58.34 billion, while the average net assets stand at $104.29 billion, according to SoSoValue data. If market sentiment continues to deteriorate and outflows persist, Bitcoin’s rally above $100,000 may remain just a distant dream.

Bitcoin ETF Flows | Source: SoSoValue

Ethereum continued its corrective path, with total outflows from spot ETFs reaching $255 million last week, after inflows of about $70 million in the previous week. Total inflows currently amount to $11.83 billion, while the average net assets under management are $12.93 billion.

Ethereum ETF Flows | Source: SoSoValue

As for spot ETFs for XRP, they exceeded expectations, with inflows rising to about $61 million last week, compared to $34 million the previous week. Cumulative inflows slightly increased to $1.39 billion on Friday, from $1.32 billion the day before. Total assets under management also rose to $1.18 billion, up from $1.12 billion during the same period.

Spot XRP ETFs | Source: SoSoValue