$3.43 billion withdrawn in two weeks: The great rout of crypto funds

A real carnage is shaking the crypto planet. And this is not a simple correction: it is a hemorrhage of capital on a global scale. In a few days, crypto investors took fear, emptying funds like never before since 2022. The red signals light up, assets melt and crypto traders no longer have confidence. Traditional markets are watching this storm from afar, observing a weakened bitcoin and an ecosystem that is holding its breath.

The United States, epicenter of the great leak of crypto funds

The United States, where inflation figures are the subject of debate, dominates the rout. According to CoinShares, they concentrate $1.65 billion in withdrawals over one week. In two weeks, crypto funds lost 3.43 billion, suddenly reversing the annual trend, now negative by 1 billion.

Institutional investors, usually more patient, are withdrawing massively. Bitcoin suffered the biggest shock: 1.32 billion outflows in seven days. Behind, Ethereum shows –308 million, XRP –43.7 million, and Solana –31.7 million.

The climate of fear sets in: the fear and greed index collapses to 14/100, a level described as “extreme fear”.

In Europe, a few pockets of resistance persist: Switzerland (+$11 million) and Germany (+$4.3 million). But the trend remains global: even American giants like BlackRock and Grayscale are recording record outflows.

“Short Bitcoin” products attract 14.5 million inflows. A clear sign: the market is hedging, it no longer believes in an immediate rebound.

Bitcoin under pressure: the Fed reignites fear in crypto markets

The appointment of Kevin Warsh as head of the Federal Reserve by Donald Trump acts like an electric shock. Known for his “hawkish” stance, Warsh embodies monetary rigor. And this prospect of a tightening worries everyone.

We believe this reflects a combination of factors, including the appointment of a more restrictive Federal Reserve chairman, continued whale selling related to the four-year cycle, and increased geopolitical volatility.

CoinShares Report, January 2026

In other words, the end of easy money rhymes with flight of crypto capital.

Managers adapt. BlackRock iShares suffers 1.2 billion withdrawals, Grayscale 300 million and Fidelity almost 200 million. Crypto funds are once again becoming speculative assets, sensitive to the slightest monetary shock.

Faced with this, some crypto traders are keeping their cool, believing that the Fed remains cautious. But confidence is broken: the market has changed course.

Crypto defends itself: tokenized gold and booming short strategies

It's not all doom and gloom. Some crypto players are taking advantage of the prevailing panic to reposition their capital. HYPE funds, backed by the tokenization of precious metals, recorded 15.5 million inflows. A boon for investors looking for a safe haven in a blockchain world.

Since October 2025, assets under management have fallen by 73 billion, falling to 165.8 billion. A historic purge. But the rotation is accelerating: short Bitcoin products have increased by 8.1% since January, proof of a defensive repositioning.

According to Thomas Perfumoeconomist at Kraken:

Although some describe Warsh as a hawk, his fundamental stance on interest rates remains quite dovish.

Crypto investors are waiting for the right signal before returning. And in the meantime, they are relying on caution, hedging and a dose of digital gold.

The numbers to remember

• Total outflows: $3.43 billion in two weeks;
• Bitcoin: $1.32 billion in withdrawals;
• Assets under management: $165.8 billion (–73 billion since October);
• Short BTC Products: +$14.5 million in inflows;
• Current BTC price: $78,901.

Bitcoin has now closed in the red for four consecutive months. A tense situation reminiscent of crypto winter periods. However, several technical signals suggest a possible rebound from February. If confidence returns, crypto could finally regain its breath. But for now, caution remains in order.