Capital Flow

Digital asset investment products experienced significant outflows, totaling $288 million, driven mainly by Bitcoin's $215 million withdrawals and cautious investor sentiment, especially in the US, while European markets exhibited more resilience.

Strategy completed its 100th Bitcoin purchase and now holds 717,722 BTC across six years. The company funded the 592 BTC buy through share sales instead of debt financing. Several smaller public firms reduced Bitcoin holdings while Strategy expanded its position. Strategy completed its 1

Recently, market risk aversion has increased, the US dollar is strong, long-term government bond yields are rising, and gold has hit new highs. Cryptocurrency assets have declined, with significant net outflows from BTC and ETH, and market sentiment is extremely fearful. Traditional derivatives institutions and mining companies are adjusting their strategies, and market funds are becoming more cautious.

EMJ Capital founder Eric Jackson stated that Bitcoin ETF investors are experiencing "institutional exits," but this does not mean the end of the bull market; rather, it is a market cleansing process, and in the future, it will be replaced by long-term capital such as sovereign wealth funds. He believes that market pessimism is intensifying, but in the future, there will be a recovery in stablecoin supply and stronger holding capital.

Vitalik Buterin sold 3,788.57 ETH worth $7.3 million amid Ethereum's declining trend. ETH is down 37% this month, trading at $1,821.55, with significant liquidations impacting bullish traders. Buterin emphasizes layered security in crypto.

Bitmine increased its holdings by over 51,000 ETH this week, bringing the total to 4.42 million ETH, accounting for 3.66% of the global supply. Chairman Tom Lee believes that the value of Ethereum will rise in the future and points out three major fundamental drivers, including Wall Street tokenization, artificial intelligence applications, and the creator economy transitioning to blockchain. Additionally, Bitmine has staked approximately 3.04 million ETH, with expected annual yields to further increase.

February 24 News, Strategy announced an additional $40 million investment in Bitcoin, despite the current market being somewhat pessimistic about Bitcoin price forecasts. The company currently holds Bitcoin worth $55 billion, with an average cost of approximately $76,020. At Bitcoin's current price of $63,000, unrealized losses amount to nearly $10 billion. Executive Chairman Michael Saylor stated that the company employs a dollar-cost averaging strategy and is not concerned about short-term price fluctuations. Recently, Bitcoin has been affected by geopolitical tensions, economic uncertainties triggered by developments in artificial intelligence, and policy changes by the Trump administration, leading to consecutive price declines. Matt Howells-Barby, Vice President of Growth at CEX, pointed out that Bitcoin could potentially drop to $50,000 in the short term. Data from DefiLlama shows that investors sold over $1 billion worth of Bitcoin ETFs in February, bringing the total ETF decline since November last year to $7 billion. Data from CF Benchmark indicates that major hedge funds reduced their Bitcoin ETF holdings by 28% between the third and fourth quarters.

February 24 News, on the first anniversary of the Pi Network open mainnet launch, approximately 300,000 PI tokens have flowed out from centralized exchanges, with the price of Pi Coin remaining around $0.16. This outflow reflects a decrease in immediate seller liquidity on exchanges and highlights increased community engagement and ecosystem activity. The Pi core team stated that since the mainnet went live independently, the project has achieved significant growth in KYC approval, mainnet migration, developer activity, and overall network participation. On-chain data shows that in the past 24 hours, exchange wallets have net outflows of approximately 305,547 Pi Coins, with one CEX alone net outflowing over 623,000 Pi Coins, offsetting small inflows on platforms like Gate. Although this change is limited relative to the total supply, combined with the anniversary celebration, it indicates that the network ecosystem is steadily expanding, and long-term holders remain confident.

February 24 News, there is a clear redemption wave in US spot Bitcoin and spot Ethereum ETFs. Data shows that on that day, the net outflow from the spot Bitcoin ETF was approximately $204 million, while the spot Ethereum ETF also saw an outflow of $49.48 million, with a total daily capital outflow of $253 million. This large-scale capital withdrawal occurred after Bitcoin's price briefly fell below the critical $65,000 level, combined with macroeconomic uncertainties caused by expectations of US tariff policies, leading to a significant decline in risk appetite in the crypto market.

ChainCatcher News: According to the Bank of Canada, it sold 1.04 million MSTR shares with a transaction value of approximately $128 million. It currently holds 1 million shares valued at about $123 million.

February 24 News, despite XRP's recent sustained pressure and a phased decline of about 9%, on-chain fund flows have shown clear signs of divergence, with large holder addresses and institutional investors continuing to add positions during the pullback, sparking market attention on whether XRP's price has bottomed out and the potential for a rebound. Data shows that since February, XRP has been consistently constrained by a downward trend resistance level, with short-term momentum remaining weak and market sentiment turning cautious. However, on-chain indicators reveal that XRP's current market price is below its intrinsic value, which usually indicates that most holders are in a floating loss. From a historical cycle perspective, when the price falls below the actual cost range, it is often seen as an undervalued phase, likely to attract medium- to long-term capital deployment.

On February 24, news reports indicate that the latest investment portfolio disclosures from digital asset management firm Grayscale Investments show an increased allocation to Cardano (ADA), now accounting for approximately 20.20% of the portfolio, ranking third after Solana and Ethereum. This change in allocation is interpreted by the market as continued institutional confidence in Cardano's long-term fundamentals and smart contract ecosystem. It is worth noting that this increase occurred amid escalating macroeconomic turbulence. Uncertainty in U.S. policy has intensified, with Trump-related tariff comments sparking risk aversion sentiment, causing Bitcoin to temporarily fall below a key psychological threshold. Mainstream cryptocurrencies also came under pressure, and ADA was unable to strengthen independently.

CoinDesk's latest report shows that Gate ranked third in the global centralized exchange spot market and fourth in the derivatives market in January 2023, with a spot trading volume of $74.4 billion, an increase of 11.1%. Gate ranks among the top three retail exchanges in open interest contracts and has launched GateAI to enable natural language trading functions, enhancing user experience.

Bitmine Immersion Technologies increased its holdings by 51,162 ETH, bringing the total to 4.42 million ETH, accounting for 3.66% of the total supply. The market value is approximately $8.7 billion, making it the publicly listed company with the largest ETH holdings worldwide. Chairman Tom Lee stated that the reason for holding ETH is optimistic about its future potential, and 68.7% of the ETH has been staked, which is expected to generate substantial passive income.

Bitdeer Technologies recently liquidated all its Bitcoin holdings, selling a total of 189.8 BTC and abandoning 943.1 BTC. This liquidation is related to funding the expansion of data centers and transitioning to AI, reflecting challenges faced by the Bitcoin mining industry. The founder responded, saying "holding zero does not mean it will always be like this in the future."

The cryptocurrency market continues to be sluggish, with Bitcoin falling below $63,000 and the panic index at an extreme fear level. Global stock markets have declined due to AI and geopolitical risks, while precious metals are favored. Tensions between Trump and Iran have escalated, and new tariff policies have triggered market panic, boosting risk aversion. Analysis indicates that the Bitcoin market needs to restore demand, and liquidity is expected to gradually recover.

Recently, the cryptocurrency market has experienced a wave of capital withdrawals. The US Bitcoin spot ETF has seen net outflows for five consecutive weeks, totaling approximately $316 million. Since the start of this withdrawal trend on January 20, a total of about $3.8 billion has been wiped out. Although facing short-term pressure, long-term capital inflows still amount to $54 billion. Bitcoin is currently trading around $65,800, and analysts believe that if it can rebound above $70,000, selling pressure may have been exhausted.

Ethereum founder V神 sold 8,651 ETH in February, but Tom Lee-led BitMine bought over 50,000 ETH on dips. Lee is optimistic about Ethereum's fundamentals, believing it has potential in asset tokenization, AI trading, and creator economy. Despite the market weakness and five consecutive weeks of net outflows in crypto ETPs, BitMine still plans to increase its holdings.