The cryptocurrency market is experiencing a bearish phase marked by sustained price declines and significant outflows from investment funds. Data shows crypto funds posted $173 million in outflows last week, the fourth straight week of withdrawals, with Bitcoin and Ethereum leading the sell-off. While smaller wallets are accumulating, larger holders are selling, reflecting mixed investor sentiment amid what analysts describe as a defined bear market.
The cryptocurrency market appears to have entered a new stage defined by consistently low prices for major coins. This bear market stance leaves investors questioning whether to buy, sell, or hold their digital assets.
Data from The Kobeissi Letter indicates crypto outflows remain strong. Crypto funds posted $173 million in outflows last week, marking their fourth consecutive weekly withdrawal.
This brings the four-week cumulative outflows to $3.74 billion. Bitcoin led the selling with $133 million in outflows last week, while Ethereum saw $85 million.
The report stated, “Crypto funds have now seen withdrawals in 11 out of the last 16 weeks. Since October 2025, $8.5 billion has flowed out of US-listed spot Bitcoin ETFs alone. Sentiment is reaching extreme bearish levels.” On-chain data reveals a split in Bitcoin accumulation patterns. Wallets holding 0.1 to 1 BTC have reached a 15-month high, accumulating more Bitcoin since October.
Conversely, wallets holding 1 to 10 BTC are at a 38-month low, having reduced their holdings. Analyst firm Arkham stated that bear markets are characterized by sustained price declines and weak sentiment. They noted this period can present trading opportunities for those with appropriate strategies.
“Bear markets can actually present excellent trading opportunities for those with appropriate strategies and risk management,” the Arkham data shared. The firm added that trading during downturns requires different approaches than bull market strategies. Market observers suggest patience has often been rewarded in previous cycles.
