After a seven-week shopping spree, crypto investors are suddenly hitting the brakes. Digital asset investment products saw a record outflow of $942 million last week, putting an end to the party. This shift comes after a whopping $12.3 billion poured into the market over the previous seven weeks.

CoinShares, a digital asset manager, reported a cool-down in trading activity as well, with trade turnover dropping from a record-breaking $43 billion to $28 billion last week.

So, what spooked investors? The finger points to Grayscale's Bitcoin Trust (GBTC). A massive $2 billion outflow from GBTC dwarfed the combined inflows into its competitors by a staggering $1.1 billion. As a result, Bitcoin-related investments took a $904 million nosedive, a sharp contrast to the previous week's record inflow of $2.86 billion.

This crypto chill caused the total value of digital assets under management (AUM) to shrink by $10 billion, settling at $88.2 billion. Just a week ago, this figure was comfortably above $100 billion.

Investors also pulled back on bets against Bitcoin. Short positions on BTC saw $3.7 million withdrawn, following a short-lived peak of $26 million invested this year.

Analysts at CoinShares believe the recent price dip caused investors to hesitate. This is reflected in the lower inflows into new US ETFs ($1.1 billion), which only partially offset the giant $2 billion outflow from Grayscale.

The selling spree wasn't just about Bitcoin. Ethereum (ETH) funds also saw outflows rise from $13.9 million to $34.2 million. Investors steered clear of Solana (SOL) and Cardano (ADA) too, with $5.6 million and $3.7 million exiting their respective funds.

However, there were some pockets of optimism. Polkadot (DOT), Avalanche (AVA), and Litecoin (LTC) products all enjoyed inflows of $5 million, $2.9 million, and $2 million, respectively.

It's important to remember that this pullback comes after a period of significant inflows. Just a week earlier, crypto investment products raked in a cool $2.92 billion, following an inflow of $2.69 billion the week before that. This brings the total YTD inflow to a impressive $13.2 billion, already surpassing the entirety of 2021's $10.6 billion.

While there's a temporary chill in the air, some analysts remain bullish on Bitcoin. Despite the recent price slide, Bernstein, an investment firm, has increased its year-end price target for Bitcoin to $90,000, up from their previous estimate of $80,000. Their optimism is fueled by Bitcoin's recent climb to $74,000 and the positive response to new spot Bitcoin ETFs.