Crypto Outflows Reach $146 Million as XRP Defies Downtrend amidst Increased US Retail Sales
Crypto Inflows Modest, Outflows Dominate Amid Strong Retail Sales
Last week, the flow of crypto into the market was relatively mild at $6 million, thanks in part to negative movements caused by robust US economic indicators. Despite the modest inflows, the positive trend hints at a shift in market sentiment.
Retail Sales Trigger Crypto Exodus of $146 Million
According to CoinShares data, the crypto inflows were overshadowed by outflows of $146 million, primarily triggered by stronger-than-expected US retail sales figures. The boost in retail spending, even after adjusting for inflation, caused households to ramp up their purchases in a bid to avoid higher prices from Trump tariffs.
"Last week, crypto investment products saw net outflows of $146 million, with unfavorable US retail data causing the outflows," as observers like James Butterfill, head of research at CoinShares, pointed out.
Overall, the US continued to record weekly outflows totaling $71 million. In stark contrast, other markets like Europe and Canada reported positive flows.
Ethereum took the brunt of the hit with nearly $27 million in outflows, and Bitcoin followed suit with $6 million in outflows. However, investors appear to have shifted their focus towards altcoins such as XRP, Solana, and Cardano, colloquially known as "made in USA tokens."
XRP Sees $38 Million in Flows
XRP saw nearly $38 million in positive flows last week, undoubtedly due to anticipation surrounding Coinbase launching XRP futures via its derivatives arm. "XRP defied the norm with inflows of $37.7 million last week, making it the third-best performer this year with year-to-date inflows of $214 million," Butterfill explained.
Institutions Treat Crypto as More Than Just a Risky Bet
While the Trump tariffs have caused a stumble in Wall Street, Bitcoin's stability along with other blue-chip cryptocurrencies could signal a maturing market. "Bitcoin's capacity to endure macroeconomic turbulence without the wild fluctuations of earlier years suggests that institutional investors view it less as a speculative wager and more as a strategic asset," said Stella Zlatarev, Nexo Dispatch editor.
In conclusion, Bitcoin is emerging as a risk-dynamic asset that doesn't collapse like high-growth stocks but doesn't attract the same safe-haven flows as traditional assets either.
[Enrichment Data]The US retail sales figures for March 2025 indicated a strong surge, with sales rising 1.4% month-over-month – significantly above forecasts of 1.3% – marking the largest increase since January 2023. This increase was primarily driven by an 8.8% year-over-year rise in motor vehicle and parts sales and a 4.8% increase in nonstore (online) retail sales, reflecting robust consumer spending and a strong retail sector overall[1][2][5].
Typically, strong retail sales figures imply increased consumer confidence and economic momentum, which can lead to reduced demand for cryptocurrencies as alternative investments or safe havens, potentially resulting in increased outflows from crypto assets back into traditional markets like equities or cash. On the contrary, weaker retail sales (or economic uncertainty) often correlate with inflows into crypto for diversification or hedging purposes[1][2][5].
Given that the strong US retail sales report signaled enhanced consumer confidence and robust economic momentum, it is feasible that this contributed to the outflows observed in the crypto market last week, as investors may have moved funds out of cryptocurrencies and into more traditional assets in response to positive economic signals[1][2][5].
- Amid the strong retail sales, crypto inflows were overshadowed by outflows worth $146 million last week, according to CoinShares data.
- Ethereum and Bitcoin recorded outflows of $27 million and $6 million respectively, while investors showed interest in altcoins like XRP, Solana, and Cardano.
- XRP saw nearly $38 million in positive flows last week, driven by anticipation of Coinbase launching XRP futures.
- Despite the stumble in Wall Street due to Trump tariffs, Bitcoin's stability and the stability of other blue-chip cryptocurrencies could indicate a maturing market where institutions view cryptocurrency less as a speculative wager and more as a strategic asset.
- According to the Enrichment Data, the robust US retail sales figures in March 2025 indicated a significant increase, and this could potentially have led to reduced demand for cryptocurrencies as alternative investments or safe havens, resulting in the observed outflows from crypto assets.
- In contrast, weaker retail sales or economic uncertainty tend to correlate with inflows into crypto for diversification or hedging purposes.
- The US retail sales report signaled enhanced consumer confidence and robust economic momentum, which could have contributed to the outflows observed in the crypto market last week, as investors might have moved funds out of cryptocurrencies and into more traditional assets in response to positive economic signals.
