Crypto Market Meltdown: $1.3 Billion in Outflows Signal Investor Caution Amidst Economic Uncertainty

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Crypto Market Update: Crypto Outflows Hit $1.3 Billion for Second Consecutive Week

By Giann Liguid and Meagen Seatter | November 10, 2025

Digital asset investment products experienced significant withdrawals last week, with outflows totaling approximately US$1.3 billion. This marks the second straight week where crypto funds have faced billion-dollar redemptions, underscoring cautious investor sentiment amid ongoing economic uncertainties and recent market volatility.


Bitcoin and Ether Show Resilience Despite Outflows

As of Monday morning (November 10), Bitcoin (BTC) was trading around US$105,995, representing a 3.7% increase over the previous 24 hours. The cryptocurrency hit an intraday high of US$106,491 and dipped to a low of US$102,061 earlier in the day.

Bitcoin had briefly slipped below the psychologically significant US$100,000 mark over the weekend, testing a support zone near US$99,000. However, the market staged a modest recovery to the mid-US$100,000 range on Monday, signaling some short-term resilience following a steep correction in October.

Ether (ETH), the second-largest cryptocurrency, saw a 4.1% rise over 24 hours, trading at US$3,592.47. The token reached a high of US$3,647.92 and a low of US$3,441.75 during the session.


Investor Outflows and ETF Dynamics

The week-long trend of crypto fund outflows was led predominantly by Bitcoin-related investment products, which saw US$932 million in withdrawals. Ethereum funds followed with US$438 million in outflows. These figures indicate a broad risk-off posture among investors, influenced by macroeconomic factors and market uncertainty.

Spot Bitcoin exchange-traded funds (ETFs) have experienced uneven demand with multiple days of outflows reversing a brief period of inflows. These ETF redemptions contribute to sell pressure on the market and were a critical factor in October’s deleveraging phase.

In contrast, short Bitcoin funds recorded their largest inflows since May, reflecting anticipation by some traders of further price declines before any sustained rebound.


Macro Events Impacting Market Sentiment

The ongoing US government shutdown, which lasted a record 40 days, has delayed the release of critical economic data, including the monthly jobs report. Independent analysts estimate the unemployment rate to be around 4.4%, but official confirmation remains pending.

Market participants are closely watching how these factors—particularly the constrained labor market and lack of fresh economic data—might affect liquidity, interest rates, and consequently crypto market dynamics.

Adding a layer of intrigue, former President Donald Trump announced via Truth Social a proposed direct-payment program that could provide US$2,000 to most Americans. Funded through tariff revenues and estimated to cost between US$300 billion and US$500 billion, such stimulus measures have historically spurred retail interest in Bitcoin. Market commentator Axel Adler Jr. noted that if a portion of these payments channels into cryptocurrency, especially Bitcoin, retail demand could provide a potential catalyst for price recovery.


Altcoins Also Making Gains

Several altcoins posted notable gains over the past 24 hours:

  • Solana (SOL) rose 5.3%, priced at US$166.61, hitting a high of US$169.36.
  • XRP surged 11.3% to trade at US$2.49, with an intraday high of US$2.56. —

Regulatory and Market Infrastructure Developments

The crypto landscape is also moving toward greater integration with mainstream financial markets. The Commodity Futures Trading Commission (CFTC) is advancing plans to authorize leveraged spot trading for Bitcoin and Ethereum on regulated U.S. exchanges such as Nasdaq, Cboe, and CME Group.

Acting Chair Caroline Pham confirmed ongoing discussions with key exchanges and derivatives platforms aimed at creating a new regulatory framework. Under this plan, leveraged crypto transactions would be governed by the Commodity Exchange Act and executed on Designated Contract Markets. This shift is expected to redirect trading volume from offshore exchanges to regulated venues, enhancing market oversight and investor protection.


Japan Strengthens Crypto Custody Regulations

In response to the 2024 DMM Bitcoin hack—which resulted in losses exceeding US$312 million—Japan’s Financial Services Agency (FSA) is proposing new registration requirements for third-party crypto custodians and trading service providers.

The draft rules would require all custodians and external system operators to be registered with regulators before serving licensed exchanges. Moreover, exchanges would only be permitted to contract with FSA-approved partners, addressing vulnerabilities exposed by the breach linked to a Tokyo-based software firm, Ginco.

The proposal has received broad support from members of Japan’s Financial System Council and is expected to be introduced to the Diet during the 2026 legislative session.


Looking Ahead

The crypto market continues to navigate a challenging phase marked by significant fund outflows, regulatory advancements, and geopolitical developments. Investors remain cautious but attentive to potential stimuli and infrastructural improvements that could steer the market back toward growth.

For real-time updates on cryptocurrency market movements and regulatory news, follow @INN_Technology on social media.


About the Authors

Giann Liguid is a graduate of Ateneo De Manila University specializing in interdisciplinary studies with expertise across security, business, and government sectors. When not reporting on market trends, Giann enjoys thrift shopping for his dogs.

Meagen Seatter is an Investment Market Content Specialist with a background in marketing, psychology, and anthropology. Based in Vancouver, she writes extensively about life sciences, cannabis, tech, and psychedelics markets. In her leisure time, Meagen enjoys gardening, cooking, and outdoor activities.


Disclaimer: The authors hold no direct investment interests in any companies mentioned in this article.


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