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The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
Digital asset investment products experienced a sharp sell-off, resulting in net outflows of $1.07 billion during the week ending May 18, according to CoinShares data. These weekly outflows mark the third-largest exit of 2026, effectively ending a six-week streak of positive inflows. Analysts attributed the heavy liquidation primarily to rising geopolitical tensions involving Iran and broader macroeconomic uncertainty.
This reversal comes as high-risk assets face mounting pressure, with traders closely monitoring the impact of geopolitical stability on ETF flows. Per market data, this shift coincides with a broader cautious stance in global markets as investors weigh monetary policy outlooks against economic growth concerns. Market experts suggest that these outflows confirm a significant institutional shift toward a 'risk-off' sentiment to hedge against potential volatility.
Regarding price action, Bitcoin (BTC) is currently trading below key support levels established earlier this month, priced at $66,840 (close May 19, 2026) per market data. Looking ahead, investors are focusing on upcoming catalysts in the economic calendar, specifically speeches from Fed officials Williams and Bowman, which may provide clarity on interest rate paths and influence the next direction for digital asset fund flows.