Bitcoin, Ether Core Narratives Are Crumbling With Prices

Bitcoin exchange-traded funds (ETFs) have fallen below $100 billion in assets under management (AUM) for the first time since April 2025, following a $272 million outflow on Tuesday. This decline is part of a broader sell-off in the crypto market, with Bitcoin dropping below $74,000 and the global cryptocurrency market capitalization falling from $3.11 trillion to $2.64 trillion over the past week according to Cointelegraph.

Ether (ETH) ETFs also recorded outflows, with investors withdrawing $3 million in a single day, extending a three-day outflow streak. The total AUM for these funds stands at $13.69 billion. Despite the outflows, some analysts argue that institutional investors remain relatively resilient, with only around 6% of assets exiting Bitcoin ETFs.

Spot Bitcoin ETFs have seen a cumulative net outflow of $1.8 billion year-to-date, with Bitcoin trading below the ETF creation cost basis of $84,000. This suggests that new ETF shares are being issued at a loss, further pressuring fund flows according to Cointelegraph.

Why Did This Happen?

The outflows come amid broader market weakness, with Bitcoin ETFs recording $545 million in outflows on Wednesday alone. This follows a brief rebound in inflows on Monday, when the funds attracted $562 million as reported by CoinPaper.

The decline in Bitcoin ETFs is linked to the broader sell-off in the crypto market. The total market capitalization of cryptocurrencies has dropped by around 20% since the start of the year. Bitcoin's price has declined from a peak of $124,752 in October 2025 to below $78,000, a drop of nearly 37%. The prolonged outflows, lasting three months, are the longest since Bitcoin ETFs launched in January 2024 according to Yahoo Finance.

How Did Markets Respond?

Ethereum has also experienced a sharp decline, falling below $2,000 for the first time in nearly a year. Vitalik Buterin, the founder of Ethereum, has sold over $6.6 million worth of ETH, adding to the downward pressure as reported by Economic Times.

BitMine, a major holder of Ethereum, has reported over $6 billion in unrealized losses on its 4.285 million ETH holdings. Despite the losses, the company's chairman, Tom Lee, has argued that these drawdowns are part of a long-term treasury strategy and are not a flaw in the investment approach according to FXStreet.

Ether's price continues to face selling pressure, with the token trading below key moving averages and technical indicators suggesting further declines. The RSI has dropped to 22, and the MACD indicator remains below its signal line, reinforcing the bearish outlook according to CryptoSlate.

What Are Analysts Watching Next?

Analysts are watching whether the current outflows from Bitcoin ETFs will lead to further sell-offs or if institutional investors will maintain their positions. According to Nate Geraci, a majority of assets in spot Bitcoin ETFs are likely to remain stable despite the recent sell-off.

Thomas Restout of B2C2 has noted that institutional ETF investors are generally resilient and tend to hold their positions for longer periods. However, he also suggested that the next wave of institutional adoption may shift toward direct trading of crypto assets rather than securitized ETFs according to Cointelegraph.

The Ethereum market is also under close watch, particularly the performance of Ethereum treasury companies. These firms have seen their market values trade at discounts to their net asset values. Supporters argue that this model preserves capital during downturns and avoids forced sales or dilutive issuance as reported by The Block.

Key levels to watch include Bitcoin's $70,000 support and Ethereum's $2,100 support. A break below these levels could trigger further declines, while a rebound above them may signal the start of a recovery according to FXStreet.

Analysts at Bloomberg and Farside Investors have highlighted that despite the outflows, Bitcoin ETFs have shown some resilience, with cumulative inflows still near historic highs. The market remains cautious, with many investors holding onto their positions even as prices fall as reported by CoinPaper.

The broader market is also watching for signs of renewed institutional interest, particularly as spot ETFs for altcoins like XRP and Solana see modest inflows. These movements suggest that while the core narratives of Bitcoin and Ethereum are under pressure, other assets may still attract investor attention according to Cointelegraph.