- Investors withdrew $1.82 billion from spot Bitcoin and Ether ETFs over five trading days as precious metals reached new record highs.
- Bitcoin fell to a two-month low of $81,102 in Singapore, marking a 34% decline from its October highs.
- Analysts say that the recent cooling period for Bitcoin is a healthy market pause, which allows the institutional narrative to catch up.
Market sentiment for digital assets changed this week, as investors moved their money back into traditional assets.
US-based spot Bitcoin and Ether exchange-traded funds saw massive withdrawals, where approximately $1.82 billion left these funds over the last five trading days.
This trend showed up just as gold and silver saw a heavy surge in value, and many traders are now wondering if the digital gold narrative is losing its shine.
Bitcoin and Ether ETFs Struggle as Gold Surges
The recent pulling of funds from the crypto space shows a rise in caution among retail and institutional players.
Data from Farside Investors shows that between Monday and Friday, spot Bitcoin ETFs lost $1.49 billion. During the same period, spot Ether ETFs saw $327.10 million in net outflows.
This decline in fund participation came alongside prices of these assets falling, and over the past five days, Bitcoin has dropped 6.55% while Ether fell nearly 9%.
CoinMarketCap data now shows Bitcoin trading near $83,400, which is a massive drop from the optimism from earlier in the month.
Earlier on January 14, the market hit a peak for 2026 with $840.6 million in daily inflows.
At that time, the Crypto Fear & Greed Index reached a “Greed” score of 61. However, that positive energy was short-lived, and the momentum quickly faded as investors moved towards gold and silver.
Why Analysts Call the Bitcoin Bearish Sentiment Short-Sighted
Not everyone believes that the current downturn is a reason to panic.
Senior ETF analyst Eric Balchunas recently shared his perspective on the situation and noted that the current negative outlook “very short-sighted.”
He reminded market players that Bitcoin performed very well in 2023 and 2024. According to Balchunas, the asset “spanked” every other class so badly that other markets are still trying to catch up.
The dread I see from bitcoiners (and the football spiking from the haters) is very short-sighted to me given that since 2022 (right before the BlackRock ETF filing) Bitcoin is up 429%, gold 177%, Silver 350%, QQQ 140%. In other words bitcoin spanked everything so bad in ’23 and… pic.twitter.com/SPNB9RTdzv
— Eric Balchunas (@EricBalchunas) January 27, 2026
He says that the market priced in the institutional adoption story very quickly. Now, the asset is taking a breather. This allows the actual real-world adoption to align with the price levels.
He described Bitcoin as being in a temporary “coma” while other assets have their moment. Gold also reached an all-time high of $5,608 this week, while silver hit $121.
And even though these metals saw a correction on Friday, they still attracted a great deal of capital away from crypto.
Institutional Perspectives on Bitcoin and Ether ETFs
Bitwise Chief Investment Officer Matt Hougan is optimistic about the long-term future.
He believes that if demand for ETFs persists, the price will eventually go parabolic. The current selling pressure might also simply be a result of high expectations, because many investors expected immediate growth after the ETF launches.
When the market slowed down, some chose to exit their positions to find gains elsewhere.
So far, The 12 US-listed spot Bitcoin ETFs have now seen net redemptions for three straight months, which stands as the longest run of outflows since these products arrived in 2024.
If this trend continues through the end of January, it could set a new record for the sector, and some analysts argue that this proves Bitcoin is not yet viewed as a true safe-haven asset.
When global uncertainty rises, many investors still prefer the physical security of gold over cryptos.