Bitcoin Updates: Digital Assets Shed $2B as Fed Uncertainty Grows, Large Investors Accumulate for 2026

Last week, digital asset investment vehicles experienced $2 billion in outflows, the largest weekly withdrawal since February, extending a three-week streak that has seen $3.2 billion exit the market. This wave of selling, fueled by uncertainty over U.S. monetary policy and significant sell-offs by large holders, has caused the total value of digital asset exchange-traded products (ETPs) to fall by 27% from their early October high of $264 billion to

now standing at $191 billion. and products were hit hardest, with in just one week, while Ethereum products lost 4% of their ETP market value.

Experts point to several causes for the decline. James Butterfill, head of research at CoinShares, identified "uncertainty around monetary policy and large-scale crypto-native selling" as the main factors

. The Federal Reserve’s firm approach—resisting interest rate cuts and prioritizing inflation control—has unsettled investors. The majority of withdrawals came from the U.S., with $1.97 billion leaving domestic investment products, while by attracting $13.2 million in new investments, as local participants saw the dip as a buying chance.

The downturn also affected alternative coins, with

giving up previous gains and recording $15.5 million in outflows, and losing $8.3 million . In contrast, Short-Bitcoin ETPs attracted renewed interest as traders sought protection against further declines . At the same time, multi-asset funds drew $69 million in new capital as investors looked to diversify during the market turbulence .

On the demand front, activity among large Bitcoin holders has been notable. Over the past month, whales have accumulated more than 375,000 BTC, and the number of long-term holding addresses has doubled to 262,000 in just two months

. Some analysts believe this accumulation could lay the groundwork for a bullish trend in 2026, especially if institutional investments return. U.S. spot Bitcoin ETFs, such as BlackRock’s IBIT, saw a net inflow of $240 million at the end of October, .

The future direction of the market may depend on greater macroeconomic certainty. A shift in Federal Reserve policy or a resolution to political deadlock could revive investor interest, while ongoing uncertainty could prompt more withdrawals. For now, the industry is focused on stabilizing supply chains and proving the value of blockchain technology in a volatile environment.