The initial 2026 crypto rally has stalled, with investment products experiencing four consecutive weeks of outflows totaling $3.74 billion. A new report details a $173 million withdrawal last week, led by U.S. investors, as trading volumes plunged. While Bitcoin and Ethereum faced significant selling pressure, some altcoins like Ripple and Solana attracted new capital, even as market data contradicts social media talk of an imminent “altcoin season.”
The strong optimism that lifted crypto markets at the start of 2026 has now faded. A new report shows digital asset investment products have seen money flow out for four weeks in a row.
Investors withdrew $173 million last week alone, contributing to total outflows of $3.74 billion over the month. This trend indicates that confidence in the market is falling, driven by large institutions deliberately reducing risk.
Trading activity has slowed down sharply, showing that investors are becoming more careful. Trading in crypto investment products dropped to $27 billion last week, compared to $63 billion the week before.
There was a clear geographical divide in investor behavior during the downturn. The United States led the sell-off with $403 million in outflows, while markets in Germany, Canada, and Switzerland saw combined inflows of nearly $200 million.
Bitcoin faced the strongest selling pressure, with $133 million in outflows as its price traded near $68,939. Similarly, Ethereum recorded $85.1 million in outflows while trading around $1,977.
In contrast, a few altcoins showed relative strength by attracting new investments. Ripple attracted $33.4 million in inflows, and Solana gained $31 million, despite their respective price declines.
On social media, many traders are discussing a potential “altcoin season.” The numbers tell a different story, as the Altcoin Season Index currently sits at 31 out of 100, indicating the market remains in a Bitcoin-dominant phase.
All in all, the market is not crashing, but it is also not ready to surge. The next significant move will likely depend on larger economic events that have not happened yet.
