Bitcoin Short-Term Holders Take Profits as ETF Inflows Surge to $1.7 Billion

Bitcoin spot ETFs attracted a record $843.6 million in inflows on Wednesday, marking the largest single-day inflows of 2026 so far. This brought the three-day inflow total to over $1.7 billion, reversing earlier outflows in early January. The surge came as Bitcoin prices climbed above $97,000 for the first time since mid-November, signaling renewed investor confidence.

BlackRock’s iShares Bitcoin ETF (IBIT) led the charge, receiving $648 million in inflows. Fidelity’s Wise Origin Bitcoin Fund (FBTC) added $125.4 million, while ARK Invest’s ARK 21Shares Bitcoin ETF and Bitwise Bitcoin ETF also saw significant inflows.

Bitcoin’s price movement coincided with a rise in investor sentiment. The Crypto Fear & Greed Index reached a level of 61 on Wednesday, entering 'greed' territory for the first time since October.

Why Did This Happen?

The inflow surge followed a brief period of outflows in early January when spot Bitcoin ETFs lost $681 million. The shift coincided with macroeconomic uncertainty, including expectations of delayed rate cuts and rising geopolitical risks. However, Bitcoin ETF inflows picked up again as investors began rebalancing portfolios after the year-end. This coincided with Bitcoin’s price rising above the 50-day EMA, a key technical indicator.

What Are Short-Term Holders Doing?

Short-term Bitcoin holders began locking in profits as prices climbed. According to data from CryptoQuant, a significant portion of Bitcoin moved to exchanges in the past 24 hours, indicating profit-taking activity. This trend is often seen when momentum in a market begins to weaken. CryptoQuant contributor IT Tech noted that such profit-taking typically signals the end of a bullish phase rather than the start of a new one.

Whale activity also showed a shift in direction. After a sharp decline in holdings between December 2024 and November 2025, whales began to increase their Bitcoin balances by 46,000 BTC last week, marking a return to positive net changes for the first time in months.

How Did Markets React?

Bitcoin’s price briefly climbed above $97,000 on Wednesday before retreating slightly to around $96,642 at publishing time. The rally was driven by ETF inflows and broader macroeconomic factors, including ongoing discussions about a US crypto regulatory bill and post-year-end portfolio rebalancing.

Market analysts remain cautious. Bitfinex analysts noted that while flows and access remain favorable for Bitcoin, the recent volatility highlights the influence of macroeconomic conditions. Short-term traders experienced significant losses as BTC dropped $3,000 in one day, triggering $180 million in liquidations.

Bitcoin’s price movement also coincided with a broader market rally. The S&P 500 reached new highs, indicating a shift in risk appetite among institutional investors.