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📉 Newsletter 73: Crypto’s Big Shake-Up: Price Up, Money Flowing Out

📉 Newsletter 73: Crypto’s Big Shake-Up: Price Up, Money Flowing Out

🦔 My Two Cents

I’ve been watching crypto off and on for the last few years. I’ve seen rallies that felt unstoppable — followed by pull-backs that wiped out half of the gains.
Now we’re in a weird zone: Bitcoin is rebounding, while money is quietly leaving. That kind of divergence always catches my attention.

📊 What’s Going On

Big Outflows from Crypto Investment Products
Digital‐asset investment products saw around US $1.3 billion in outflows last week — the second week in a row with billion-dollar withdrawals. (INN)
This tells me some investors are staying cautious, even as broader risk assets recover.

Spot Bitcoin ETF Outflows, Despite Price Rebound
Even though Bitcoin’s price is moving higher, U.S. spot Bitcoin ETFs are experiencing over US $2.0 billion in outflows during the week. (InvestingHaven)
That suggests either profit-taking, reallocation, or wariness about the rally’s durability.

Corporate Treasuries Chasing the Fringe
Some companies holding crypto as treasury assets (known as “digital-asset treasuries” or DATs) are shifting from big names like Bitcoin or Ethereum into lesser-known, more volatile tokens. (Reuters)
Risk profile rising sharply here — especially since many of these firms borrow money or trade below net token asset value.

Rebound in Bitcoin Price + Bullish Analyst Targets
Bitcoin recently pushed above ~US $100,000. Analysts are now pointing to targets of US $120,000 to US $200,000 in 2025. (Investopedia)
But — and this is important — price recovery doesn’t mean all risks are gone.

Money Laundering & Compliance Risk
Separate research finds nearly US $2.0 billion was laundered through Western crypto exchanges by Russian-language dark-market sites in the first nine months of 2025. (united24media.com)
Governance and compliance aren’t behind us — they’re still very real.

🧭 Why It Matters (and What to Watch)

Flows vs Price Divergence
When the price is coming up but money is coming out, you have to ask: who’s leaving and why? Are they taking profits? Are they shifting to other assets? Or are they sceptical of the rally?

Risk Profile Is Changing
With treasuries chasing fringe tokens, and huge outflows from mainstream ETFs, the crypto sector could be more fragile even if it looks stable.
Volatility may jump when the next shock hits.

Regulation & Macro Trends Are Key

  • ETF flows will be a major indicator — watchers should track inflows vs outflows.
  • Institutions’ behaviour (accumulation vs distribution) matters more than price headlines.
  • Policy changes (U.S., EU, Asia) and macro elements like interest rates and risk sentiment will shape the next leg up or down.

🔥 This is one Bitcoin newsletter that reveals what’s really driving the market.

✅ Final Takeaway

Crypto might be showing green candles, but the underlying story is more nuanced.
If you’re simply jumping in because the price is up, you may be ignoring bigger signals.
If you’re using crypto as a hedge, a swing trade, or just part of a diversified portfolio — this is the moment to be awake, alert, and selective.

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Stay sharp, stay spiky — be the hedgehog with a strategy
— Mindy
Founder, Hedgehog Huddle