📊 / Crypto Capital Flows

— Weekly Market Brief

Digital assets are currently navigating a liquidity vacuum. The aggressive institutional bidding seen in early March has hit a wall, replaced by a period of net distribution as macro uncertainty peaks.

Institutional appetite saw its first major contraction of the year. BTC-ETF flows turned sharply negative, with a massive net outflow of ~$396M recorded between March 26–27 alone. ETH-ETFs followed suit with ~$141M in outflows.

Despite the spot selling, the structural setup remains heavy. Open Interest OI in $BTC remains near record highs, but the lack of fresh stablecoin minting stagnant at ~$314B suggests that the market is currently cannibalizing its own liquidity.

We are seeing a rotation from weak-hand ETF buyers back into the hands of long-term whales who are absorbing the dip off-exchange.