Bitcoin ETF Outflows Hit $1.7B as Bears Lose Momentum

Key Insights

• Bitcoin selling pressure eased despite $1.7B ETF outflows streak
• Market sentiment stayed in extreme fear as bears lost momentum
• Analysts flagged range-bound price action before potential rebound

Bitcoin faced sustained selling pressure as U.S.-based spot Bitcoin exchange-traded funds recorded five consecutive days of net outflows. Data showed investors pulled about $1.72 billion from the products during the period, reflecting a broad risk-off shift across crypto markets.

Despite the heavy ETF selling, on-chain metrics suggested downside momentum weakened. Market data indicated that while Bitcoin remained in negative territory, selling pressure eased from late November levels.

This divergence mattered because ETF flows often reflected retail sentiment, while on-chain indicators tracked underlying market behavior. The split signaled growing uncertainty rather than a clear bearish continuation.

ETF Selling Accelerated as Sentiment Slipped

Spot Bitcoin exchange-traded funds posted net outflows of $103.5 million on Friday alone, extending the sell-off streak to five trading sessions. The data covered a shortened U.S. trading week due to the Martin Luther King Jr. Day holiday, according to figures cited from Farside.

Total ETF outflows reached approximately $1.72 billion over the five-day window. The selling occurred as Bitcoin traded below the psychologically important $100,000 level for more than two months.

Bitcoin changed hands near $89,160 at publication time, according to CoinMarketCap. The asset last traded above $100,000 on Nov. 13, according to data.

Market participants often track ETF flows to assess retail participation and short-term sentiment. Persistent outflows typically indicated reduced conviction among spot buyers.

On-Chain Data Showed Selling Pressure Easing

While ETF data pointed to risk aversion, on-chain indicators painted a more nuanced picture. Growth Rate Difference data showed selling pressure cooled since late November, according to market commentary.

The metric fell to roughly -0.0013 in late November but has recently improved to about -0.0009. The shift suggested that sellers had lost intensity, even though Bitcoin prices had not confirmed a bullish reversal.

Analysts stressed the change did not signal a confirmed recovery. Instead, it showed that bears gradually lost control as marginal selling slowed.

That dynamic explained why Bitcoin stabilized near key levels despite sustained withdrawals from ETFs. Price weakness continued, but downside acceleration faded.

Price Levels Framed Short-Term Market Structure

Technical analysis commentary highlighted defined price zones shaping near-term behavior. Bitcoin cleared a weekly imbalance between $96,000 and $98,000 before triggering a sharp sell-off.

The decline pushed prices toward the monthly open, where buyers defended levels, producing a modest bounce. That move created an upside imbalance between $93,600 and $94,500, which traders expected to revisit.

Short-term traders identified $91,400 as a liquidity zone following a recent local high. Analysts noted that the level could attract price action in the coming sessions.

On the downside, traders monitored weekly lows between $86,700 and $86,300. A failure to hold that range could expose Bitcoin to deeper tests near $84,400 and $83,400.

Market expectations centered on a consolidation range between $91,400 and $86,300 before a directional break. Analysts framed the structure as corrective rather than trend-ending.

Extreme Fear Defined Broader Market Mood

Sentiment data reinforced the cautious tone across crypto markets. The Crypto Fear and Greed Index posted an “Extreme Fear” reading of 25 in its latest update.

The index remained in that territory since midweek, reflecting persistent anxiety among market participants. Broader crypto sentiment weakened alongside Bitcoin’s consolidation.

Analytics firm Santiment described the market as being in a “phase of uncertainty” in a recent report. The firm said retail traders continued to reduce exposure.

“Retail traders are heading for the exits, while money and attention are flowing to more traditional assets,” Santiment said. The firm noted that lower social activity often preceded stabilization phases.

At the same time, Santiment pointed to quieter signals, such as reduced supply distribution, as early signs that a bottom could be forming. The firm advised patience rather than aggressive positioning.

Macro Factors Added Pressure to Bitcoin Narrative

Macro dynamics also influenced sentiment. Nik Bhatia, founder of The Bitcoin Layer, linked the weak Bitcoin mood to the strong performance in precious metals.

“With gold practically $5,000 and silver at $100, the sentiment in Bitcoin is so poor,” Bhatia said in a post. He compared the mood to post-FTX levels near $17,000.

Bhatia described his outlook as bullish but emotionally difficult due to prevailing fear. He said traders often faced discomfort near inflection points.

Crypto analyst Bob Loukas echoed the view, stating that sentiment sat “in the gutter.” He argued the market appeared overdue for a countertrend rally, though timing remained unclear.

The combination of ETF outflows, easing sell pressure, and extreme fear framed Bitcoin’s near-term outlook. Traders focused on whether the price could hold above $86,300 and reclaim liquidity zones near $93,000 in the weeks ahead.