The cryptocurrency market has once again demonstrated its volatility, with a remarkable turnaround in investor sentiment. After experiencing a significant outflow of $619 million from Monday to Thursday, the market saw a massive influx of $737 million on Friday, resulting in a weekly inflow of $117.8 million. This sharp reversal, as reported by CoinShares, is one of the largest daily inflows recorded in 2026, indicating a substantial improvement in risk appetite among investors.
Despite the midweek bleed, the total assets under management remained steady at $155 billion. Investment products tied to Bitcoin attracted over $192 million in the past week, bringing its total for the year to $4.2 billion. However, this figure is still below recent weekly averages of close to $1 billion. A small group of investors remains cautious, with Short Bitcoin products raking in $6 million in inflows. Meanwhile, multi-asset products and XRP brought in $3.6 million and $3 million, respectively, during the same period.
Regional Demand and Market Trends
The US saw a significant decline in inflows, with $47.5 million, far lower than the $1.1 billion seen a week earlier. In contrast, Germany and Canada experienced steadier demand, with $43.8 million and $16 million, respectively. Switzerland and Australia also recorded smaller inflows of $5.2 million and $4 million. Ethereum, on the other hand, saw $81.6 million exit, snapping a three-week streak of gains above $190 million. Solana followed suit with over $11 million in outflows.
The recent rally in Bitcoin, which broke above $80,000 for the first time since January 31, has been accompanied by a rising correlation with US stocks, nearing 2023 levels. This renewed link with broader risk assets suggests that the market may be drawing strength from a wider base of support. Institutional demand remains steady, with implied volatility near yearly lows and the VIX around 17, indicating that markets are largely looking past geopolitical risks. However, the situation remains fluid, with upcoming labor data and earnings from major players potentially leading to market choppiness.
