Crypto Selloff Slows: Is the Bottom Finally in Sight?

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In these days, while the markets of digital coin seem to gather their breath, the tumult of weeks past hints at a pause, as though a distant observer in St. Petersburg had yawned and decided to read the CoinShares report with amusement.

Investment products shed the wild cascade of outflows that once roared like a winter storm, retreating from above $1.7 billion for two weeks to a modest $187 million last week, as if the river had decided to meander rather than rush the ice.

Crypto Outflows Shrink to $187 Million, CoinShares Says

CoinShares’ numbers show assets under management slipping to $129.8 billion, the lowest since March 2025, a gentle tremor in a room full of mirrors reflecting a price slide that still whispers more than it shouts.

From the chart below, one perceives a curious tapestry: regions playing tune-to-tune, institutions leaning one way and another region another, while the global mood stays suspiciously cautious, as if awaiting a sunset that never quite arrives.

Even as prudence held sway, trading activity did not slumber. Crypto exchange-traded products (ETPs) posted a record weekly volume of $63.1 billion, surpassing the prior high of $56.4 billion from October 2025, which is to say the market can still perform a vaudeville of numbers even when it pretends to be solemn.

Notably, such high volumes amid waning outflows suggest investors are repositioning rather than deserting the stage-a subtle distinction, like choosing to retire to the study rather than to the countryside, with a sigh and a cheeky remark.

Bitcoin endured $264 million in outflows, signaling a rotation away from the pioneer crypto toward other digital assets that promise novelty and perhaps a cousinly wink of diversification.

Among altcoins, XRP, Solana, and Ethereum led inflows, taking in $63.1 million, $8.2 million, and $5.3 million respectively. XRP, in particular, has become a favorite in the parlour, attracting a year-to-date of $109 million, which is a considerable applause for a coin that could tell a good tale with less noise.

Crypto Capitulation Shows Signs of Slowing, But Bottom Not Yet Confirmed

Despite ongoing price pressure, the swift retreat of outflows is no small feat, following $1.73 billion in negative flows and $1.7 billion the week prior. This brisk contraction in fund flows across consecutive weeks is being read as a potential turning point, like a barometer that finally points to fair weather after a long squall.

Analysts whisper that such deceleration often precedes changes in market momentum, hinting that the selling frenzy may be approaching its limit, or at least taking a long breath before the next act.

“The deceleration in outflows suggests selling pressure is easing, and capital flight may be reaching exhaustion. Historically, this shift often precedes a change in market momentum. Early signs of stabilization are beginning to emerge,” remarked Andrei.

Historically, crypto cycles do not reverse at once after the peak of sell-offs. Instead, the market tends to ease its outflows gradually before inflows return, a pattern that seems to be tiptoeing into the current correction, like a gentleman stepping off a carriage with a cane for balance.

Thus, last week’s slowing outflows may be a leading indicator, but not a sworn covenant of recovery.

The broader implication is that the market may be shifting from panic-driven capitulation toward a quieter consolidation and selective accumulation, a scene less dramatic and more akin to a rural estate settling after a storm.

While Bitcoin continues to see outflows, inflows into altcoins and regional markets suggest investors are rotating risk rather than exiting crypto entirely, a discreet game of musical chairs rather than a final curtain call.

Still, caution remains warranted because one week of slower crypto outflows is no guaranteed bottom, only a pricking of the bubble’s sleeve-enough to make one curious, not enough to declare a feast.

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2026-02-09 14:31