Crypto News Today: Crypto Outflows Hit $1.17B as U.S. Markets Struggle, But Altcoins Continue to Attract Capital

Digital asset investment products recorded their second straight week of outflows, with $1.17 billion exiting the market as post–liquidity cascade volatility and doubts over a December U.S. rate cut kept sentiment weak. Despite the downturn, several altcoins — led by Solana — continued attracting inflows, signaling a widening divergence between Bitcoin, Ethereum and the broader altcoin sector.Key TakeawaysTotal outflows: $1.17 billion in the past week.Bitcoin outflows: $932 million.Ethereum outflows: $438 million.Altcoins remain strong: Solana leads with $118M weekly inflows and $2.1B over 9 weeks.Regional divergence: U.S. saw $1.22B outflows, while Europe logged $91M inflows.ETP volumes remain high: $43B for the week.Another Week of Outflows as U.S. Sentiment Breaks DownDigital asset investment products saw $1.17 billion in outflows last week — the second consecutive weekly decline — as market confidence remained fragile following the October 10 liquidity cascade.The selloff was amplified by uncertainty surrounding a potential U.S. Federal Reserve rate cut in December, pushing investors into defensive positioning.Trading volumes across crypto ETPs stayed elevated at $43 billion, with intraday flows briefly turning positive on Thursday when optimism grew around progress on the U.S. government shutdown. However, that relief rally faded quickly, and outflows resumed on Friday.U.S. Outflows Dominate, Europe Still AccumulatingA significant regional divergence continued:U.S. outflows: $1.22 billionGermany inflows: $41.3 millionSwitzerland inflows: $49.7 millionThe U.S. accounted for nearly all net negative flows, reflecting heightened macro uncertainty and sensitivity to political developments. Europe, meanwhile, continues absorbing capital, marking a stark contrast in investor positioning.Bitcoin and Ethereum Lead the DrawdownBitcoin remained the primary driver of negative flows:BTC outflows: $932 millionShort Bitcoin ETP inflows: $11.8 millionThe strongest weekly inflow into short products since May 2025.Ethereum also saw substantial selling pressure:ETH outflows: $438 millionTogether, BTC and ETH accounted for nearly $1.37 billion of total outflows — exceeding the overall weekly outflow figure due to offsetting altcoin inflows.Altcoins Hold Firm: Solana and HBAR Show StrengthDespite broad market weakness, altcoins continued to attract capital, led by Solana:Top Altcoin InflowsSolana (SOL):$118 million weekly inflows$2.1 billion inflows over the past nine consecutive weeksHBAR (Hedera): $26.8 millionThe resilience in alternative assets highlights a strong rotation into non-BTC assets even as broader market volatility persists.Crypto investment products remain under pressure, with nearly all of the week’s $1.17 billion outflows centered in the United States. Bitcoin and Ethereum saw significant withdrawals, reflecting ongoing macro uncertainty, post-liquidation volatility, and wavering expectations around a potential Fed rate cut.