Bitcoin's Drop from High Hits 42% as Weekly Fund Outflows Pick Up Speed

The US accounted for the vast majority of the withdrawals, recording $1.44bn in weekly outflows. Germany, Hong Kong and Sweden also posted net outflows during the week.

Bitcoin was trading at about $71,400 as of 20:06UTC on 1 Jun, down nearly 3% over the past 24 hours and 7.2% on the week. The cryptocurrency is about 42% below its record high of $122,250 reached in October 2025, according to CoinGecko data. Bitcoin's market capitalization currently stands at around $1.43tn.

The selloff coincides with continued weakness in fund flows. Digital asset investment products saw $1.67bn in net outflows between 26 May and 31 May, extending a three-week streak of withdrawals and marking the second-largest weekly outflow of the year, CoinShares said.

Record outflows

Bitcoin products accounted for the majority of withdrawals from digital asset investment products during the week, while Ether (ETH) products recorded a further $257mn of outflows.

Over the past three weeks, investors have withdrawn a total of $4.21bn from crypto investment products, CoinShares data found. Total assets under management (AUM) across the sector fell from $148bn to $141bn, their lowest level since early April.

Geopolitical drivers

According to the report, concerns over the war between the US and Iran appear to be pushing investors away from riskier assets, like cryptocurrencies. 

This conflict also appears to have overshadowed regulatory developments such as progress on the proposed CLARITY Act crypto legislation – the Act, introduced in May 2025, hopes to create clearer rules for the US crypto industry.

Despite Bitcoin's outflows, not all digital assets saw selling pressure: XRP attracted $20.3mn of inflows last week, while Hyperliquid and Near funds brought in $10.8mn and $7.6mn, respectively.

Macro pressures

Paul Howard, senior director at trading firm Wincent, echoed the view that broader economic and geopolitical concerns are driving investor behaviour. 

In comments shared with Sandmark, he specifically pointed to rising bond yields and reduced expectations for interest rate cuts as key macroeconomic pressures on crypto markets.

The Federal Reserve last cut interest rates in December 2025, lowering its benchmark federal funds rate by 0.25 percentage points to a target range of 3.5% to 3.75%. Since then, rates have remained unchanged – a trend that experts say has led some investors to move away from riskier investments, including digital assets. 

Howard also argued that the recent outflows are more a symptom of market uncertainty than the cause of Bitcoin's decline.

"While the headline outflow figures appear significant, they have not, in isolation, been a major driver of price action so far," he said. "Instead, these outflows appear to reflect a cooling in crypto speculation driven primarily by broader macroeconomic developments."