Bitcoin 15-week first capital outflow, unexpectedly rising into the "greed" zone indicating a new turning point?

After experiencing a continuous inflow of funds for 15 weeks, the Crypto Assets market has finally encountered a rare turning point. The latest data shows that digital asset investment products saw a net outflow of up to $223 million in a single week, breaking the streak of multiple weeks of bull run. Bitcoin experienced a net loss of $404 million this week, causing a stir in the market. However, the Fear and Greed Index unexpectedly bounced back into the "Greed" zone, indicating that market sentiment is rapidly reversing. What new opportunities and risks are hidden behind this withdrawal of funds?

The hawkish policy of the FOMC and U.S. economic data trigger a sharp reversal of funds

At the beginning of this week, the digital asset market started strong, with capital inflows reaching 883 million USD at one point. However, as the Federal Open Market Committee (FOMC) released hawkish signals and US economic data performed strongly, market risk aversion rapidly intensified. Although the employment data released on Friday was somewhat weak, briefly bringing about dovish expectations, the scale of capital outflow still exceeded 1 billion USD. CoinShares analysis believes that this wave of capital withdrawal is more like a healthy profit-taking rather than a comprehensive bearish reversal.

Bitcoin faces the largest weekly outflow, while Ethereum and altcoins attract capital against the trend

According to the "Digital Asset Fund Flow Weekly Report," Bitcoin experienced a capital outflow of up to 404 million USD this week, making it a disaster area. However, since the beginning of the year, the cumulative inflow of BTC remains stable at 20 billion USD, demonstrating its resilience as a core asset. At the same time, Ethereum has withstood the pressure, achieving net capital inflow for the 15th consecutive week, attracting 133 million USD in a single week, showing investors' strong confidence in ETH's long-term potential.

Other mainstream altcoins have also performed well: XRP saw an inflow of $31.3 million, Solana attracted $8.8 million, and SEI had an inflow of $5.8 million. Although Cardano and Aave had smaller inflows of $1.3 million and $1.2 million respectively, they also reflect the market's demand for diversified asset allocation.

Global capital flows are diverging, with Hong Kong becoming the largest inflow of Crypto Assets

In terms of regional distribution, the United States leads the outflow of funds this week, with a total of 383 million dollars, followed by Germany and Sweden with outflows of 35.5 million dollars and 33.3 million dollars, respectively. Brazil also recorded an outflow of 12.8 million dollars.

In contrast, the Asian market demonstrates strong capital attraction capabilities. Hong Kong became the largest inflow destination for crypto assets this week with 170.4 million USD, followed closely by Switzerland with an inflow of 52.4 million USD. Canada and Australia also recorded positive inflows of 12.4 million USD and 7.6 million USD respectively, indicating that global capital is accelerating its search for new safe havens.

Fear and Greed Index rebounds, market sentiment returns to greed zone

Despite the astonishing scale of capital outflows, the Bitcoin Fear and Greed Index has quickly rebounded from the neutral zone, currently sitting at 64, clearly in the "Greed" area. This index aggregates multiple data points such as trading volume, volatility, market dominance, social media sentiment, and Google Trends, reflecting the true psychological state of market participants.

In July, the Bitcoin Fear and Greed Index once approached the "Extreme Greed" zone, reaching a high of 72 by the end of the month. This kind of emotional fluctuation often indicates that the market may be nearing a short-term peak or bottom, and investors need to be cautious of counter-trend risks. As Warren Buffett said: "I am fearful when others are greedy, and greedy when others are fearful."

Conclusion

The digital asset market has seen its first outflow of funds after a 15-week bull run, but the overall liquidity remains strong. Bitcoin is under short-term pressure, yet the long-term trend remains unchanged; Ethereum and mainstream altcoins are attracting capital against the trend, indicating that funds are quietly adjusting their allocations. The rapid rebound of the Fear and Greed Index further reminds us that market sentiment can be unpredictable. Has the next turning point in the market already begun to brew? Investors should remain cautious while also paying attention to global capital flows and sentiment indicators, seizing the new opportunities brought by each market reset.