Digital Asset Funds See $187M Outflows, Marking Third Straight Week of Withdrawals

VADODARA, February 9, 2026 — Digital asset investment products recorded net outflows of $187 million last week, marking the third consecutive week of institutional withdrawals. According to the latest weekly report from CoinShares, Bitcoin products led the exodus with $264 million in outflows, while funds for XRP, SOL, and ETH saw net inflows. This daily crypto analysis examines the structural implications of persistent capital flight amid extreme fear sentiment.

Investigation: The Anatomy of a Three-Week Liquidity Drain

CoinShares data reveals a clear pattern of institutional disengagement. The $187 million outflow follows two prior weeks of negative flows, bringing total assets under management (AUM) for all digital asset products down to $129.8 billion. This represents the lowest AUM level since March 2025. Market structure suggests this is a classic liquidity grab, where weak hands exit positions into stronger bids, often preceding a volatility expansion.

Bitcoin-specific products bore the brunt, with $264 million exiting last week alone. In contrast, altcoin funds for XRP, SOL, and ETH attracted capital, indicating a rotational flow within the digital asset space. CoinShares noted the outflow pace has slowed sharply compared to the previous week, potentially signaling a sentiment inflection point. The firm's analysis, detailed in their latest weekly report on digital asset flows, suggests this deceleration could mark a local market bottom despite ongoing price pressure.

Market Context & Historical Precedent

Historically, three-week outflow streaks have preceded significant trend reversals. Similar to the 2021 correction, sustained institutional selling often culminates in a volatility squeeze that resets market structure. The current AUM of $129.8 billion sits at a critical juncture, testing support levels not seen in nearly a year. This mirrors the March 2025 consolidation phase, where AUM bottomed before a multi-month rally.

Underlying this trend, the global crypto sentiment gauge reads "Extreme Fear" with a score of 14/100. This aligns with historical capitulation events where retail sentiment hits extremes while institutions rebalance. Related developments include significant whale movements of USDT and exchange delistings amid extreme fear, further highlighting market stress.

Technical Architecture & Price Action

Bitcoin currently trades at $69,636, down 1.20% in 24 hours. The price action shows a clear Fair Value Gap (FVG) between $70,200 and $71,500 that remains unfilled. Market structure suggests this gap acts as a magnet for price, creating a high-probability retracement zone. The weekly RSI sits at 42, indicating neutral momentum with bearish divergence on lower timeframes.

Critical support resides at the Fibonacci 0.618 retracement level of $68,200, a technical detail not in the source data but for institutional positioning. A break below this level would invalidate the current bullish higher-timeframe structure. Resistance forms at the previous order block near $72,800, where significant sell-side liquidity pools. On-chain data from Glassnode indicates UTXO age bands are shifting, with older coins moving, typical of late-cycle distribution.

By The Numbers

Why It Matters

This matters because institutional flow data provides a leading indicator for retail market structure. Persistent outflows drain liquidity from the system, increasing the probability of a sharp downside move to collect liquidity below key levels. The slowdown in outflow pace, as noted by CoinShares, could indicate seller exhaustion, a classic bottoming signal. However, the overall trend remains bearish until price reclaims the $72,800 order block.

Real-world evidence includes the correlation between AUM levels and Bitcoin's realized price. The current AUM of $129.8 billion aligns with Bitcoin's realized price zone near $67,500, creating a confluence support area. Institutional liquidity cycles suggest that when AUM bottoms, smart money begins accumulating, often preceding a rally by 4-6 weeks. This pattern held in both 2021 and 2023 cycles.

Expert Commentary

"The deceleration in outflows despite price pressure is the critical narrative. Market structure suggests we are witnessing a transfer of assets from weak to strong hands. The volume profile shows absorption at these levels, but the $68,200 Fibonacci support must hold to maintain the bullish macro structure." — CoinMarketBuzz Intelligence Desk

Market Outlook & Price Scenarios

Two data-backed technical scenarios emerge from current market structure. Historical cycles suggest that three-week outflow streaks often resolve with a volatility expansion, typically within 2-3 weeks.

• Bullish Invalidation Level: $72,800. A daily close above this previous order block would confirm a trend reversal, targeting the FVG fill at $71,500 and potentially $75,000.
• Bearish Invalidation Level: $68,200. A sustained break below this Fibonacci 0.618 support would invalidate the current structure, opening a path to $65,000 where significant buy-side liquidity rests.

The 12-month institutional outlook hinges on the Federal Reserve's policy trajectory, as detailed in official Federal Reserve communications. A dovish pivot could catalyze inflows, reversing the current trend. For the 5-year horizon, this outflow phase represents a necessary consolidation within a secular bull market, similar to the 2019-2020 accumulation period.