 ▲ Bitcoin (BTC), Cryptocurrency / ChatGPT-generated image © |
A massive capital shift has been detected as retail investors who previously experienced devastating market crashes are exiting the virtual asset market in large numbers and seeking refuge in traditional safe-haven assets such as stocks and gold.
According to investment-focused media outlet FXStreet on March 2 (local time), a Wintermute report citing JPMorgan Chase data revealed that $3 billion has flowed out of spot Bitcoin (BTC) exchange-traded funds (ETFs) over the past three months, moving instead into equities and gold markets. Behind this large-scale exodus lies the brutal market collapse last October, which wiped out $7 billion in positions within a single hour and $19 billion in total. Bitcoin, once trading at around $126,000, was halved amid geopolitical pressures and weakened investor sentiment and is now hovering near $66,000.
Investment enthusiasm for altcoins has cooled even faster, with spot Ethereum (ETH) ETFs recording two consecutive weeks of outflows. However, investors have not completely left the market; instead, they are shifting funds into dollar-pegged assets to avoid price volatility risks. Over the past 90 days, stablecoins such as Tether (USDT), USD Coin (USDC), and the algorithmic-based USDe have seen a massive net inflow of $45.6 billion.
Institutional investors are moving differently from retail participants, though with caution. Over the past week, spot Bitcoin ETFs recorded net inflows of $446 million, suggesting that some institutions view current prices as a buying opportunity. At the same time, corporate treasury managers are aggressively purchasing put options in preparation for a potential drop below the $60,000 level, implementing strong downside hedging strategies while leaving room for further declines.
Technical indicators also reflect prolonged selling pressure. The 14-day Relative Strength Index (RSI) of the Grayscale Bitcoin Trust stands at 37.06, nearing oversold territory, while the 20-day moving average of $30.67 remains well below the 50-day moving average of $36.08. The departure of retail investors and the rotation of funds into stocks and gold are being interpreted not as a one-off panic, but as a gradual and structural shift toward stability.
Disclaimer: This article is for investment reference only and we are not responsible for any investment losses resulting from its use. The content should be interpreted for informational purposes only.