The strong optimism that lifted crypto markets at the start of 2026 has now faded.
A new report from CoinShares shows that this trend is getting worse. Digital asset investment products have seen money flow out for four weeks in a row.
In the past week alone, investors withdrew $173 million. Over the last month, total outflows have reached $3.74 billion, showing that confidence in the market is falling.
This situation is not just caused by small investors panicking. Large institutions are deliberately reducing their risk.
Shift in investor sentiment
First, trading activity has slowed down sharply, showing that investors are becoming more careful.
At the start of the week, the market saw strong inflows of $575 million, but this quickly turned into a large outflow of $853 million as prices weakened.
A better-than-expected inflation report later in the week brought a short relief rally of $105 million, but it did not change the overall trend. One major warning sign was the fall in trading volume.
Trading in crypto investment products dropped to $27 billion last week, compared to $63 billion the week before. This shows that fewer people are actively trading.
Second, there was a clear difference between how investors in the US and other regions were behaving. The United States led last week’s downturn, with $403 million leaving the market in just one week.
In contrast, other countries were still putting money into crypto. Germany added $115 million, Canada $46.3 million, and Switzerland $36.8 million.
Overall, markets outside the US brought in $230 million.
This suggests that while American investors were reducing risk because of economic uncertainty, many European and Canadian investors saw current prices as a good chance to buy.
Winners and losers
Finally, Bitcoin [BTC] was facing the strongest selling pressure, while some altcoins are holding up better. Bitcoin saw $133 million in outflows and was trading near $68,939 after falling 1.79% in the past day.
Ethereum [ETH] also faced strong selling pressure, recording US$85.1 million in outflows, trading around $1,977 after dropping nearly 4%. At the same time, a few altcoins were showing strength.
Ripple [XRP] attracted $33.4 million in inflows even though its price fell to $1.48. Solana [SOL] gained $31 million in new investments despite trading near $85.56.
Chainlink [LINK] also saw small inflows and was holding weak around $8.78. This shows that while major cryptocurrencies are under pressure, some smaller projects are still attracting investor interest.
Is a Bitcoin or altcoin season incoming?
Thus, as the crypto market moves through this mid-February slowdown, there is a clear gap between what people are saying online and what the data actually shows.
On social media platforms like X, many traders are talking about a coming “altcoin season.”
But the numbers tell a different story. The CoinMarketCap Altcoin Season Index is currently at 31 out of 100. This means the market is still in what is called “Bitcoin season.”
All in all, the market is not crashing, but it is also not ready to surge. For now, it feels like a waiting period.
The next big move, whether led by Bitcoin or by altcoins, will likely depend on larger economic events that have not happened yet.
Final Summary
- Falling trading volumes and low liquidity are making prices more sensitive to small sell-offs.
- The US is leading the current sell-off, while parts of Europe and Canada are quietly accumulating.
