{"id":114957,"date":"2025-11-22T07:00:42","date_gmt":"2025-11-22T07:00:42","guid":{"rendered":"https:\/\/mycryptomania.com\/?p=114957"},"modified":"2025-11-22T07:00:42","modified_gmt":"2025-11-22T07:00:42","slug":"crypto-funds-face-third-consecutive-weekly-losses-totaling-3-billion-in-outflows","status":"publish","type":"post","link":"https:\/\/mycryptomania.com\/?p=114957","title":{"rendered":"Crypto Funds Face Third Consecutive Weekly Losses, Totaling $3 Billion In Outflows"},"content":{"rendered":"

Recent commentary from the Kobeissi Letter has underscored a troubling trend in the capital markets: crypto-focused funds have encountered substantial outflows<\/a>, with a notable $2 billion exiting last week alone.\u00a0<\/p>\n

This marks the most significant withdrawal since February and extends a concerning streak, bringing total outflows to $3.2 billion over the last three weeks.<\/p>\n

Bitcoin And Ethereum Face Massive Withdrawals<\/h2>\n

Leading these outflows is the market\u2019s leading crypto, Bitcoin (BTC), which experienced a massive $1.4 billion in withdrawals, while the second largest cryptocurrency, Ethereum (ETH), followed closely with $689 million.\u00a0<\/p>\n

As a result of these dynamics, the average daily outflows as a percentage of assets under management <\/a>(AuM) have reached unprecedented levels.<\/p>\n

The cumulative impact of these outflows, coupled with declining prices, has led to a 27% reduction in total assets under management, now standing at $191 billion, a situation that the Kobeissi Letter has termed a \u201cstructural decline.\u201d<\/p>\n

Market sentiment remains largely negative, particularly for Bitcoin, with expert Lark Davis examining current trends through the lens of key moving averages.\u00a0<\/p>\n

Davis pointed out<\/a> that as long as Bitcoin trades below the 50-week exponential moving average (EMA), currently placed just above the $10,000 mark, it remains in a bear market.\u00a0<\/p>\n

He questioned whether the current downturn signifies a \u201cbig bear,\u201d hinting at skepticism regarding recovery prospects, or a \u201cmini bear,\u201d reminiscent of April\u2019s decline where Bitcoin, despite losing the 200-day EMA, did not breach the 50-week EMA.<\/p>\n

Davis proposed three possible scenarios for the coming weeks. The first posits a drastic descent into \u201cgoblin town\u201d without recovery, which he considers unlikely given current oversold conditions<\/a>.\u00a0<\/p>\n

The second scenario involves a short-term rally that tests the 50-week EMA, potentially luring investors back before a sharp downturn.\u00a0<\/p>\n

The third scenario, which Davis leans towards, suggests that Bitcoin could reclaim the 50-week EMA by year-end, fueled by easing macroeconomic conditions, including interest rates and market valuations.<\/p>\n

Crypto Market Turmoil Intensifies\u00a0<\/h2>\n

Compounding these market concerns is the precarious situation of Strategy, formerly known as MicroStrategy, headed by Bitcoin advocate Michael Saylor.\u00a0<\/p>\n

Jacob King, CEO of SwanDesk, remarked <\/a>that should Bitcoin fall a few more percentage points, specifically below Strategy\u2019s average buy at just below $80,000, the firm would find itself in a precarious position with its Bitcoin holdings.\u00a0<\/p>\n

King fears that forced liquidations could occur again for crypto investors, which could drive Bitcoin prices down toward $10,000 or lower due to increased selling pressure.<\/p>\n

King\u2019s commentary reflects a broader skepticism regarding the sustainability of the crypto market\u2019s structure. He criticized the investment strategies surrounding Bitcoin as being propped up by \u201cunsustainable fraud and hopium.\u201d\u00a0<\/p>\n

Highlighting past statements by Saylor, King recalled when Saylor encouraged extreme measures\u2014such as taking out double mortgages<\/a> and selling personal assets\u2014to invest in Bitcoin, asserting that the current market turmoil should come as no surprise.<\/p>\n

At the time of writing, Bitcoin was trading at $84,700, over 30% below all-time high levels of $126,000 reached earlier in October.\u00a0<\/p>\n

Featured image from DALL-E, chart from TradingView.com<\/p>","protected":false},"excerpt":{"rendered":"

Recent commentary from the Kobeissi Letter has underscored a troubling trend in the capital markets: crypto-focused funds have encountered substantial outflows, with a notable $2 billion exiting last week alone.\u00a0 This marks the most significant withdrawal since February and extends a concerning streak, bringing total outflows to $3.2 billion over the last three weeks. Bitcoin […]<\/p>\n","protected":false},"author":0,"featured_media":114958,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-114957","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/114957"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=114957"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/114957\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/media\/114958"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=114957"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=114957"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=114957"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}