Bitcoin ETF Outflows Exceed $1 Billion as BTC Briefly Dips Below $90K

Bitcoin ETF outflow has surged past $1 billion after a three-day streak of withdrawals, with U.S. spot Bitcoin exchange-traded funds (ETFs) experiencing significant investor exits. On January 13, Bitcoin briefly dipped below the $90,000 mark, reflecting broader market concerns and risk-off sentiment.

The latest Bitcoin ETF outflow data from SoSoValue shows a net withdrawal of $284.19 million on January 13 alone. This continues a negative trend where over $1 billion exited Bitcoin ETFs over the past three sessions.

Major Players Lead the Outflows

The most significant contributor to the Bitcoin ETF outflow on January 13 was Fidelity’s FBTC, which saw $113.64 million in net withdrawals. ARK 21Shares’ ARKB followed closely, with outflows totaling $92.36 million.

Other major outflows included:

Grayscale’s GBTC: $89.01 million withdrawn.

Bitwise’s BITB: $18.64 million in outflows.

In contrast, BlackRock’s IBIT defied the trend, recording an inflow of $29.46 million, making it the only ETF to register positive movement. The remaining Bitcoin ETFs reported zero flows for the day.

“The ongoing Bitcoin ETF outflow trend reflects a broader risk-off sentiment as macroeconomic factors influence investor behavior,” said James Butterfill, Head of Research at CoinShares.

The total trading volume for the 12 spot Bitcoin ETFs on January 13 was reported at $3.17 billion, slightly lower than the previous day’s $3.26 billion. This decline in volume, combined with the substantial Bitcoin ETF outflow, underscores a cooling demand for spot Bitcoin investment products.

Broader Market Factors Impacting Bitcoin ETF Outflow

The Bitcoin ETF outflow coincides with Bitcoin’s price temporarily dropping below the $90,000 support level, a move that many analysts attribute to recent macroeconomic developments.

Stronger-than-expected U.S. payroll figures, which drove bond yields higher, have contributed to the risk-off sentiment across financial markets.

Additionally, growing concerns around President-elect Donald Trump’s proposed tariffs have strengthened the U.S. dollar while pressuring risk assets like Bitcoin.

“We’re seeing a confluence of negative macro factors driving the current Bitcoin ETF outflow,” noted Alex Krüger, a macroeconomist and crypto analyst. “The rise in bond yields and dollar strength are key pressure points.”

Bitcoin Bounces Back Above $95K

Despite the Bitcoin ETF outflow and temporary price dip, Bitcoin has shown resilience. As of the latest data, BTC has recovered to $95,000, holding a key support level. Analysts suggest this level could be pivotal for Bitcoin’s potential return above $100,000.

“Bitcoin’s recovery above $95K is encouraging but needs sustained momentum to reverse the ETF outflow pressure,” stated Michaël van de Poppe, a prominent crypto trader.

The Bitcoin ETF outflow trend isn’t isolated to Bitcoin alone. On January 13, Ethereum ETFs experienced their fourth consecutive day of outflows, with a total of $39.43 million withdrawn from the nine active Ethereum ETFs.

Key figures for Ethereum outflows included:

Grayscale’s Ethereum Mini Trust: $37.84 million outflow.

Grayscale GBTC Fund: $14.49 million withdrawn.

However, BlackRock’s ETHA recorded a modest inflow of $12.9 million, partially offsetting the losses.

At press time, Ethereum (ETH) was trading at $3,175, reflecting a 1.9% decline.

Expert Insights on Bitcoin ETF Outflow and Market Recovery

Several market analysts have weighed in on the recent Bitcoin ETF outflow and its potential implications:

Cathie Wood, ARK Invest CEO: “Outflows are often driven by short-term market fear. Long-term holders remain unfazed by temporary volatility.”

Eric Balchunas, Bloomberg ETF Analyst: “The magnitude of the Bitcoin ETF outflow suggests a temporary correction rather than a structural shift in demand.”

As the Bitcoin ETF outflow crosses $1 billion, investors are closely watching key support levels. If Bitcoin can maintain its recovery above $95,000, market sentiment may stabilize, reducing the outflow pressure on spot ETFs.

However, continued macroeconomic uncertainty, including stronger bond yields and U.S. dollar strength, could keep Bitcoin ETF outflow elevated in the near term.

“The current outflow streak doesn’t reflect long-term sentiment but rather short-term profit-taking and macro-driven caution,” concluded Butterfill.

Bitcoin ETF Outflow Raises Market Caution

The ongoing Bitcoin ETF outflow trend, surpassing $1 billion in three days, highlights growing caution among investors amid broader market uncertainty. While Bitcoin has shown signs of price recovery above $95K, sustained inflows will be necessary for a full reversal.

With both Bitcoin and Ethereum ETFs under pressure, market participants will be closely monitoring price stability and macroeconomic developments in the coming weeks. Stay updated with the latest developments in the cryptocurrency industry through The BIT Gazette