Crypto Potato
2026-01-20 04:42:05

$2.17B Floods Into Crypto as Bitcoin Dominates, But Geopolitics Trigger a Sudden Reversal

Digital asset investment products saw strong inflows of $2.17 billion last week. This was the highest weekly total since October 10, 2025, shortly before a major market crash. Most of the inflows came earlier in the week, which indicated strong investor interest. However, sentiment flipped on Friday after outflows of a whopping $378 million hit the market. The reversal followed rising diplomatic tensions over Greenland, renewed threats of additional trade tariffs, and reports that Kevin Hassett, a policy dove, is likely to stay in his current role instead of becoming the next US Fed Chair. Crypto Investors Piled In Early According to CoinShares’ Digital Asset Fund Flows Weekly Report, Bitcoin led the market with inflows of $1.55 billion over the past week. Despite regulatory uncertainty, other major tokens also attracted capital. Proposals under the US Senate Banking Committee’s CLARITY Act, which could limit yield offerings on stablecoins, did little to stop incoming capital into Ethereum and XRP, which recorded $496 million and $69.5 million, respectively. Several altcoins also posted gains, led by XRP products with $45.5 million. Sui added $5.7 million, followed by Lido at $3.7 million and Hedera at $2.6 million. Litecoin and Chainlink also registered smaller but positive inflows of $2.3 million and $1.2 million, respectively. Multi-asset products, on the other hand, shed $12.5 million. Investor interest remained mostly strong across the world. The US took the lead after drawing $2.05 billion in fresh investment. Germany and Switzerland recorded solid gains of $63.9 million and $41.6 million, while Canada and the Netherlands saw $12.3 million and $6 million. Meanwhile, France recorded $1.3 million, Australia saw $0.3 million, Italy added $0.2 million, and New Zealand registered $0.1 million. Sweden, in contrast, shed over $4 million, while Brazil also saw $1 million exit. Broader Market Caution Market experts believe that the flow reversal is now translating into broader risk-off behavior across digital assets. For instance, Mercury’s Co-Founder and CEO Petr Kozyakov said that the correction suggests that “optimism was on thin ice.” Following the episode, investors appear to be moving toward traditional safe havens. “The biggest cryptocurrency stands at $93,000, with the dive in Asian trading evaporating most of this year’s gains. While sentiment had flipped positive at the start of the year, the pullback in digital assets suggests that optimism was on thin ice, underscored by multi-million-dollar liquidations across derivatives markets. Cryptocurrency markets are once again spiralling into risk-off mode as global stock markets also record losses. Meanwhile, gold and silver continue to shine brightly as investors seek out safer pastures.” The post $2.17B Floods Into Crypto as Bitcoin Dominates, But Geopolitics Trigger a Sudden Reversal appeared first on CryptoPotato .

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