Key Takeaways
- The leading cryptcoin BTC had net outflows of $902.5 million.
- The ETH weathered a bigger storm, suffering the worst streak since its launch, and the net outflows neared $796 million.
- The BTC and ETH are currently trading above the 200-day SMA, and the ETFs are showing signs of trend reversal.
- The experts suggest that investors remain cautious as the crypto market embraces a new quarter amidst mixed macroeconomic signs and positive technical signals.
The Exchange Traded Funds (ETFs) of the flagship cryptocurrencies, BTC, ETC, experienced net outflows of around $1.7 billion in the past few days, ending the previous positive streak. The period from September 22 to 26 saw crypto ETFs feeling the brunt of the larger macroeconomic uncertainties fueled by fears around economic slowdown. On a positive note, despite the record outflows, the leading currencies have rebounded, and the crypto market is rallying. But whether the momentum continues depends on the macro signals.
The BTC and ETH ETFs See Outflows
The leading cryptcoin BTC had net outflows of $902.5 million. More than $300 million was withdrawn from Fidelity’s FBTC alone. The ETH weathered a bigger storm, suffering the worst streak since its launch, and the net outflows neared $796 million, led by Fidelity’s FETH and BlackRock’s ETHA fund.
The move was attributed to the loss of investor confidence due to prevailing macroeconomic uncertainties. The fears of economic slowdown due to increasing inflation and weak labor data are definitely not helping the crypto market, as it relies on increased risk appetite and liquidity. The Fed’s recent rate cuts were not followed by further cuts; rather, the stance seems to have turned hawkish. The global debate on stricter crypto exchange regulations has further dampened the market in the past week. The quarter-end profit taking further added fuel to the fire.
The Dominant Cryptocurrencies are Rebounding and Rallying
Despite the outflows in the past week, leading cryptocurrencies and popular altcoins such as Solana and XRP have rebounded and are showing signs of rallying as the fourth quarter is about to begin. The BTC is trading around $114,080.51, above its immediate support levels. The trading volume had increased by more than 50%. The recovery is largely attributed to the increased whale activity. Whales are investors with large holdings who could influence the market with their holdings. The ETH, which had experienced the worst withdrawal, is currently priced $4,200.01 and has seen a 2.23% increase in the past 24 hours. Both are trading above their 200-day simple moving average (SMA). The positive technical indicators are signalling a recovery and rally.
Additionally, the current state of the market clearly indicates that the institutional interest in leading currencies remains intact. Besides, ETFs are currently seeing a trend reversal with more inflows. Nevertheless, even when the BTC and ETH ETFs faced backlashes, the popular next-gen Altcoins, such as Solana and XRP, saw increased institutional interest.
What’s in Store for the Last Quarter of 2025
Amidst the record outflows, the dominant cryptocurrencies have shown resilience. Yet, a reassessment of the portfolios by institutional investors can not be ruled out if the overall economy continues to reel under pressure. The record outflows clearly indicate how deeply the macroeconomic signals could impact the institutional adoption of crypto. Although price swings are normal, institutional investments are crucial for the emerging crypto market. ETFs are the preferred investment options as they provide exposure to riskier, highly rewarding crypto assets for institutional investors. Regardless of the setback, the current price recovery and signs of trend reversal regarding ETFs are signalling an upward trend for the last quarter. The experts suggest that investors remain cautious as the crypto market embraces a new quarter amidst mixed macroeconomic signs and positive technical signals.