gital asset outflows totaling $32 million were recorded last week. Bitcoin suffered the most with a total outflow of $25 million while some altcoins recorded inflows ranging from $0.36 million to $0.26 million.

• US regulators are intensifying their regulatory approach on the crypto space with recent enforcement actions such as stop order mandate, Wells Notice to exchanges, and hints of lawsuits.
• The crypto crackdown is causing fear among institutional investors, leading to massive digital asset outflows totaling $32 million last week.
• Bitcoin suffered the most with a total outflow of $25 million while some altcoins recorded inflows ranging from $0.36 million to $0.26 million.

Regulators Intensify Regulatory Approach

The crypto space is experiencing increasing tension as United States regulators are intensifying their regulatory approaches. Some of the recent enforcement actions include a stop order mandate on crypto token issuers, a Wells Notice to some exchanges, and hints of lawsuits.

Fear Among Institutional Investors

The heat of the crypto crackdown is gradually creating fear among institutional investors. A recent report by CoinShares reveals that massive digital assets investments are flowing out of the industry with total outflows amounting to $32 million last week.

Bitcoin Suffers Most

Bitcoin suffered the most with the rising negative sentiment within the digital space resulting in an overall outflow of $25 million – accounting for almost 78% of total outflows. However, short Bitcoin investment products recorded an inflow totaling $3.7 million within the period; witnessing a larger YTD (Year-to-date) inflow amounting to $38 million.

Altcoin Performance Mixed

Regarding altcoins, there was a mixed performance reflected in the negative sentiment: Ethereum had an outflow of $7.2 million; Avalanche saw an outflow of $0.5million; Polygon experienced an outflow of $0.8million; Cosmos experienced an flowof$1 .6million; BNB had an inflowof$0 .36million; Ripple (XRP) had an inflowof$0 .19million ; Fantom had an inflowof$ 0 .26mil lion; and Aave also experiencedaninflo wof$ 0 .26million .

Encouraging Investment Inflows

Since early 2023, investors have been more enthusiastic about digital investments with inflows for January last week totaling at a 6-month high record – amounting to $117 million.. However, a shift in market sentiment caused this figure to decline as more funds flowed out due to fear among participants in response to increased regulatory pressure from US authorities on cryptocurrency businesses and services providers