Bitcoin ETF Outflows Erase Early-Year Gains Amid Market Caution
Bitcoin ETFs have seen over $1 billion in net outflows over the past three days, nearly offsetting the early-month surge that kicked off 2026.
Bitcoin (BTC) $90,545.61 ETFs started the year strong, drawing more than $1 billion in inflows during the first two trading days, signaling renewed investor appetite for risk. That optimism has quickly faded: the 11 U.S.-listed spot ETFs recorded a cumulative net outflow of $1.128 billion over the past three days, almost canceling out the $1.16 billion inflow from January 2–3, according to Farside Investors. Year-to-date inflows now sit roughly flat, highlighting institutional caution and weakening bullish momentum from early-month gains.
“ETF flows paint a tactical picture, with periods of inflows followed by modest outflows. This indicates rotation rather than conviction buying,” said Vikram Subburaj, CEO of India-based Giottus exchange. “Macro conditions have tightened risk appetite, and broader risk-off sentiment has seeped into crypto alongside equities.”
Bitcoin has reflected this caution, dropping from highs above $94,600 on Monday to around $90,000, briefly dipping below $89,300 on Thursday. DeFi tokens and memecoins have also retraced gains from the start of the week.
Market volatility may increase Friday with the release of U.S. December nonfarm payrolls at 13:30 UTC and the Supreme Court ruling on tariffs. FactSet estimates the U.S. economy added 55,000 jobs in December, down from November’s 64,000 and below the 12-month average of 77,800. The jobless rate is expected to fall slightly to 4.5% from 4.6%, while average hourly earnings may rise 3.6% year-on-year.
These developments could influence bets on Federal Reserve rate cuts and broader risk appetite, potentially impacting Bitcoin and other risk assets.
