Investors are tired of risky assets: 1.33 billion USD leaving BTC ETF

The cryptocurrency market has just entered a severe downturn with a 35% plunge, resulting in a loss of approximately $1 trillion USD in market value. This is not just an ordinary correction but a clear sign of widespread disillusionment within the investor community. The confidence of funds and financial institutions has been shaken, triggering a massive capital shift: from high-risk digital assets to traditional safe havens like precious metals.

The Great Migration: Crypto Loses $1.33 Trillion USD from ETFs

The movement of capital from cryptocurrency-tracking exchange-traded funds (ETFs) is unprecedented in scale. Bitcoin was hit hardest, with over $1.33 billion USD withdrawn from ETFs — the worst figure since the November sell-off. It seems investors have grown tired of waiting for recovery and are beginning to cut losses to ensure safety.

Ethereum is not spared from this fate, with $611 million USD pulled from related ETFs — matching the panic levels seen in mid-December. Meanwhile, XRP experienced its first weekly outflow after a good week, with $40.6 million USD in net capital outflow. Notably, Solana (SOL) still shows some resilience, but the inflow is weak, only about $9.57 million USD — a record low. As of 01/30/2026, SOL has gained 1.89% in the past 24 hours, but this is not enough to change the overall trend.

Precious Metals Reign Supreme: Capital Flows Here

While digital assets are in free fall, gold and silver are shining with impressive gains. Gold currently has a market cap of $34.6 trillion USD, and silver stands at $5.8 trillion USD, both strongly supported by geopolitical tensions and a weakening US dollar. Since October, silver has appreciated to match the entire market capitalization of Bitcoin — an intriguing number reflecting a significant shift in investor sentiment.

This indicates a clear shift: major institutions are reducing risk by withdrawing from highly volatile assets. Digital gold — the marketing story of crypto — is losing ground to real precious metals amid uncertain geopolitical conditions.

Liquidity Paradox: Plenty of Money but Crypto Still Falling

An interesting phenomenon has emerged in recent weeks: global liquidity has hit a record $162 trillion USD, which typically leads to strong crypto price increases. However, since November 15, a clear divergence has appeared — liquidity is rising, but cryptocurrencies are declining.

This reflects a harsh reality: investors are not only tired of waiting but are also fed up with high-risk assets. Abundant capital is bypassing potential opportunities in crypto to seek safe havens. Cash and precious metals have become the preferred choices.

Outlook: When Will Crypto Become Attractive Again?

The recovery of cryptocurrencies will largely depend on the policies of the new Fed Chair. If policies aim to lower interest rates and are risk-friendly, investor disillusionment could be alleviated. But until then, cash and precious metals will remain the kings of the market.

Information from Trading Insight is for reference only. Please conduct thorough research before making any investment decisions.