Bitcoin News Today: Bitcoin ETFs Post $357M in Outflows as Institutional Sellers Weigh on BTC

Bitcoin's U.S. spot ETFs posted a net outflow of $142.2 million on December 23, marking the third consecutive day of redemptions from these investment vehicles according to the report. The outflows were led by major players like BITB, GBTC, and Grayscale BTC, with each losing tens of millions in redemptions. Meanwhile, BlackRock's IBIT ETF managed a modest inflow of $6 million, offering a rare counterpoint to the broader trend.

This sustained outflow suggests ongoing reallocation within the crypto-tracking market, rather than a sudden drop in overall demand according to market analysis.

Analysts are watching closely to see if this trend continues or if inflows may return in upcoming sessions, as these flows have the potential to influence Bitcoin's price and liquidity. The outflows have also raised concerns about institutional confidence in the asset, with many questioning whether recent market dynamics reflect a correction or a longer-term bearish shift.

How Markets Reacted

Bitcoin's price has been under pressure, hovering near $85,000 amid high real yields and a fading risk appetite. The Crypto Fear & Greed Index recently dropped to about 11, signaling extreme fear among traders and reinforcing the bearish sentiment. In parallel, leveraged positions in the derivatives market have seen over $580–600 million in liquidations in a single day, amplifying intraday volatility as forced selling hits an already thin order book.

The ETF outflows are exacerbating these dynamics, with $357–358 million in withdrawals recorded in a single session, the largest since late November. This outflow trend is reversing earlier inflows seen earlier in the year and signals that a portion of institutional investors are reducing exposure as Bitcoin approaches key support levels. The weakening inflow of stablecoins into exchanges has also contributed to a fragile environment, where each support level for BTC-USD becomes more vulnerable.

What Analysts Are Watching

The behavior of long-term Bitcoin holders, defined as those with coins held for over 155 days, is another key concern. Their net position changes have surged from approximately 116,000 BTC to 269,000 BTC within two weeks, indicating a sharp increase in selling pressure. This shift is not typical of short-term speculators and suggests a more strategic reallocation by major holders. In addition, large entities holding between 10,000 and 100,000 BTC have sold or redistributed about 36,500 BTC, worth roughly $3.4 billion, further highlighting the bearish momentum.

Market participants are also keeping a close eye on macroeconomic developments, particularly U.S. inflation data and Federal Reserve policy signals. Recent comments from Fed member Christopher Waller indicated that rates remain above neutral, leaving room for potential cuts. However, the absence of a clear bullish trigger has left Bitcoin in an indecisive trading range of $86,000 to $90,000. Analysts are debating whether this is a temporary correction or a signal that the bear market is intensifying.

Risks to the Outlook

The latest outflows from Bitcoin ETFs are raising red flags among top analysts, who have adjusted their price predictions based on current market conditions. For instance, 10x Research has adopted a bearish near-term stance, though it sees buying opportunities in late 2026 and beyond. Matrixport, meanwhile, warns that the current cycle is still in line with the traditional three-year bullish and one-year bearish pattern. The delay in passing the CLARITY Act has also prolonged regulatory uncertainty, creating further headwinds for crypto investors.

On the other hand, the recent volatility has highlighted structural advantages in some exchanges. KuCoin, for example, has demonstrated strong liquidity resilience amid the market downturn, according to a CoinDesk Data report. The exchange saw a cumulative spot and perpetual futures trading volume of over $1.25 trillion in 2025, with a steady growth pattern that contrasts with the typical boom-and-bust cycles observed in crypto markets. KuCoin's stable order book depth for major altcoins has placed it alongside industry giants like Binance and OKX, underscoring its growing role in the global digital asset market.

As Bitcoin continues to trade near key support levels, the next few weeks will be critical for determining whether this is a short-term pullback or a deeper bearish shift. Investors are advised to monitor ETF flows, institutional activity, and macroeconomic signals for further clues on the market's direction.