CZ Retweet: 'Rich Bank Buying Bitcoin' as U.S. Bank Continues to Accumulate During Retail Panic Selling

Spot Bitcoin ETFs posted $681 million in net outflows during the first full trading week of 2026. The drop in inflows followed a brief early-year rally, with outflows exceeding inflows by the week's end. SoSoValue reported four consecutive days of redemptions, with the largest single-day outflow reaching $486 million.

Market conditions shifted toward risk-off positioning as fading rate-cut expectations and rising geopolitical tensions pushed investors away from risk assets. Vincent Liu of Kronos Research attributed the pullback to macroeconomic uncertainty and the need for clearer signals before re-risking capital.

Meanwhile, institutional accumulation of Bitcoin continued, led by firms like BlackRock. The asset manager added nearly $900 million in BTC in January, rebuilding exposure after a drawdown at year-end 2025. On-chain data also showed long-term Bitcoin holders reducing selling activity to levels not seen since 2017.

Why Did Institutional Demand Remain Strong Despite ETF Outflows?

BlackRock's continued accumulation of Bitcoin reflects a broader trend of institutional confidence despite retail outflows. The firm now holds approximately 780,400 BTC, valued at around $70 billion. This buying occurred amid a sharp decline in long-term holder selling, which signals a cooling in downside pressure according to on-chain data.

The contrast between institutional and retail behavior highlights a structural shift in the market. While spot Bitcoin ETFs saw heavy redemptions in the first week of 2026, BlackRock's actions suggest that large players view Bitcoin as a strategic long-term asset.

How Are Major Banks Expanding Crypto Exposure?

Bank of America and JPMorgan Chase are actively integrating crypto into their wealth management services. Bank of America now allows its 15,000 wealth management advisors to recommend up to a 4% allocation to Bitcoin ETFs for client portfolios. This move signals a broader shift in traditional finance as crypto moves from a speculative asset to a regulated investment according to Bank of America.

JPMorgan Chase has also taken a major step by acquiring the Apple Card program from Goldman Sachs. The deal, which includes the transfer of $20 billion in credit balances, positions JPMorgan as a key player in the digital finance ecosystem according to Webpronews.

What Are Analysts Watching for Next-Market Signals?

Analysts are closely monitoring macroeconomic data and regulatory developments. The U.S. Consumer Price Index and Federal Reserve guidance will be key indicators for potential rate cuts in 2026. Morgan Stanley has filed for Bitcoin and Solana ETFs, signaling further institutional interest in digital assets.

The geopolitical landscape remains a concern. A U.S. military strike in Venezuela has heightened uncertainty, which could impact risk appetite. Additionally, on-chain metrics such as Bitcoin's Net Unrealized Profit/Loss and SOPR Ratio are being used to gauge market sentiment.

Investors are also watching how the CLARITY Act progresses in the Senate. The proposed legislation aims to define the regulatory framework for stablecoins and DeFi, which could shape the future of crypto markets according to Cointelegraph.

The next major catalysts for Bitcoin include macroeconomic clarity, regulatory developments, and institutional inflows. Until these factors align, the market is expected to remain in a cautious, sideways range.