Rising diplomatic tensions involving Greenland added to market unease. At the same time, renewed threats of additional trade tariffs resurfaced. Shifting expectations around the future leadership of the US Federal Reserve further unsettled sentiment. Reports suggesting that Kevin Hassett would remain in his current role rather than move toward the Fed chair reshaped views on the policy outlook.

Bitcoin Carried the Market

According to CoinShares’ weekly Digital Asset Fund Flows report, the bulk of inflows was concentrated in Bitcoin. Bitcoin investment products recorded $1.55 billion in net inflows, clearly leading the market. Despite ongoing regulatory uncertainty and debate around the US Senate Banking Committee’s CLARITY Act, capital continued to move into major crypto assets.

Ethereum products attracted $496 million, while XRP-related products saw $69.5 million in inflows. Even as potential restrictions on yield-generating stablecoin structures were discussed, demand for core assets remained resilient. This suggests that investors are, for now, sidelining near-term regulatory risks.

Selective Buying Sharpened Altcoin Divergence

Altcoin flows painted a more selective picture. XRP-linked products stood out with $45.5 million in inflows. Sui added $5.7 million, followed by Lido with $3.7 million and Hedera with $2.6 million. Litecoin and Chainlink also posted modest gains of $2.3 million and $1.2 million, respectively.

In contrast, multi-asset investment products recorded $12.5 million in outflows. This pattern points to investors trimming complexity and favoring clearer, single-asset exposure as perceived risk increases.

Capital Concentrated in the US

Regionally, flows were heavily skewed toward the United States. US-based products attracted $2.05 billion, making it the clear center of gravity for the week. Germany followed with $63.9 million, while Switzerland recorded $41.6 million. Canada and the Netherlands also posted smaller but positive inflows.

Elsewhere, sentiment diverged. Sweden saw more than $4 million in outflows, while Brazil recorded withdrawals of around $1 million. The contrast highlights how regional risk perceptions are increasingly shaping global crypto allocation decisions.

Risk Appetite Back Under Pressure

Friday’s reversal is now being interpreted as part of a broader shift toward risk-off positioning. Mercury Co-Founder and CEO Petr Kozyakov noted that market optimism appeared fragile, likening conditions to “thin ice.” Bitcoin’s pullback toward the $93,000 level, combined with sharp selling during Asian trading hours, erased a significant portion of year-to-date gains.

Heavy liquidations across derivatives markets underscored how exposed positioning had become. As global equity markets also moved lower, investors rotated toward traditional safe havens such as gold and silver. Once again, crypto markets found themselves trading under the shadow of macroeconomic risk.

At this stage, the key question is no longer the size of recent inflows, but how much of that capital will remain in place. With geopolitical tensions and monetary policy expectations still unresolved, sustained confidence may prove difficult. In the days ahead, both flows — and the absence of them — are likely to carry equal weight.

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The post Crypto Optimism Faded After Strong Inflows appeared first on Coin Engineer.

Bitcoin Hits All-Time High, Institutional Demand Surges 

According to Binance Research, the crypto market grew by 10.3% in May. This growth was driven by Bitcoin (BTC) reaching a new all-time high (ATH) and strong capital inflows into ETFs. Although Ethereum (ETH) lagged in this bull run, it still gained 43.9% in May, continuing its upward trend from April. 

Meanwhile, increasing tariff tensions between the U.S., China, the European Union, and the United Kingdom caused uncertainty in the markets. Although tariffs were temporarily halted by a court ruling, the U.S. government later reinstated them. 

Despite ongoing macroeconomic uncertainty, institutional interest in Bitcoin accelerated. Companies began to view BTC as a long-term store of value. In total, 116 publicly traded companies hold 809,100 BTC in their treasuries. With increasing regulatory clarity, more companies have announced plans to purchase Bitcoin. Some firms diversified their holdings into assets such as ETH, XRP, and Solana (SOL). 

Binance Research stated: 

“The direction of institutional crypto assets will depend on macro conditions, regulatory developments, and market cycles. However, current momentum is strong. Bitwise projects that institutional treasuries could reach 1 million BTC by 2026.” 

DeFi Rises by 19%, Gaming Sector Lags Behind 

In May, the crypto sectors experienced capital rotation and structural divergence. The DeFi sector grew by 19%, fueled by new product launches and yield opportunities. Meme coins rose by 9.3%, AI-themed tokens gained 4.7%, and real-world assets (RWA) increased by 3.6%. However, the gaming sector and Layer-2 solutions showed weak performance. 

On the other hand, U.S. spot Bitcoin ETFs saw at least $5.2 billion in inflows—marking the highest level since November 2024. Toward the end of the month, rising uncertainty and profit-taking led to approximately $962 million in outflows. 

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The post Binance Crypto Report: DeFi, BTC, and ETFs Take the Spotlight  appeared first on Coin Engineer.