Crypto Investment Outflows Reach $508M Amid US Policy Uncertainty

Bitcoin Leads Outflows as XRP and Altcoins See Continued InflowsDigital asset investment products recorded $508 million in outflows last week, marking a second consecutive week of investor caution following the US Presidential inauguration. The uncertainty surrounding trade tariffs, inflation, and monetary policy has led to a significant decline in trading turnover, dropping from $22 billion to $13 billion within two weeks.    Bitcoin Sees Heavy Selling as Short Positions IncreaseBitcoin bore the brunt of the outflows, with $571 million withdrawn, as some investors opted to increase short positions, leading to $2.8 million in short-Bitcoin inflows. This shift highlights growing skepticism about Bitcoin’s short-term price stability amid macroeconomic concerns and policy uncertainty.XRP Leads Altcoin Inflows Amid SEC Lawsuit SpeculationDespite the broader market downturn, altcoins saw sustained inflows, led by XRP, which attracted $38.3 million. Since mid-November 2025, XRP has recorded $819 million in total inflows, reflecting optimism that the SEC may drop its lawsuit against the token.Other notable inflows included:Solana (SOL): $8.9 millionEthereum (ETH): $3.7 millionSui (SUI): $1.47 million  Regional Trends: US Outflows Contrast With European GrowthThe US saw $560 million in outflows, reinforcing the prevailing negative sentiment in the region. However, Europe continued to record strong inflows, with Germany and Switzerland leading the charge at $30.5 million and $15.8 million, respectively.As macroeconomic conditions and regulatory uncertainty persist, investor sentiment remains divided between risk aversion in major markets like the US and continued optimism in Europe’s crypto investment landscape.