Digital Asset Market Trends Revealed in Strategy Watch #4 Report

The digital asset market has been experiencing fluctuations in institutional capital flows and fund performance, according to the latest report from Strategy Watch #4. The report highlights a selective recovery in capital allocation, with BTC showing signs of stabilization after a significant outflow in previous months. In contrast, ETH remains in net outflow throughout April, indicating a divergence between the two assets.

Stablecoin demand accelerated significantly in April, reaching multi-month highs and suggesting a meaningful rotation of capital into dollar-denominated on-chain instruments. This trend is evident in the strong directional move of stablecoin inflows from $1.8B to $5.4B during the month. In contrast, Ethereum stood apart from this trend, remaining in persistent net outflow throughout April.

The report also highlights the performance of DeFi TVL flows on Ethereum, which reversed sharply in April and eroded the stabilization trend observed in March. Total ETH locked in DeFi fell from around $54B at month-open to around $44.9B by close, indicating sustained allocator caution towards on-chain yield strategies.