Bitcoin slips below $90,000 as U.S. spot crypto ETFs see biggest outflows in months

Bitcoin slid back below $90,000 on Thursday, sparking a broad pullback across digital assets as U.S. spot cryptocurrency exchange-traded funds (ETFs) swung to their heaviest net outflows in months and hundreds of millions of dollars in leveraged bets were wiped out.

Bitcoin dips and the crypto market retreats

Bitcoin, the largest cryptocurrency by market value, traded around $89,600 to $90,700 in afternoon U.S. hours, down roughly 2% to 3% over the previous 24 hours after several intraday drops beneath the $90,000 mark.

The total value of the cryptocurrency market fell about 2.5% to just over $3 trillion, erasing more than $80 billion in paper value compared with a day earlier.

ETF flows swing from strong inflows to sharp outflows

The selloff followed a sharp reversal in fund flows into U.S.-listed spot bitcoin products that have become a primary gateway for institutional and retail investors. After pulling in more than $1.1 billion of new money in the first two trading days of the year, those funds collectively recorded about $486 million in net outflows on Wednesday—the largest daily withdrawal since late November.

While the move is modest by crypto’s volatile standards, it underscores how tightly digital asset prices are now tethered to Wall Street’s ETF machinery and to broader risk sentiment, rather than to purely crypto-native catalysts.

Spot bitcoin and ether products turn into sellers

U.S. spot bitcoin ETFs launched in January 2024 after approvals by the Securities and Exchange Commission. Since then, products from BlackRock, Fidelity, Ark/21Shares, VanEck and others have attracted roughly $57 billion to $58 billion in net inflows, according to fund flow trackers.

Those same products turned into net sellers this week.

ETF analytics firms reported that, on Wednesday:

• U.S. spot bitcoin funds saw about $486 million in net redemptions.
• Fidelity’s Wise Origin Bitcoin Fund (FBTC) had roughly $247 million in outflows, the largest among peers.
• BlackRock’s iShares Bitcoin Trust (IBIT) recorded about $129 million in outflows after leading inflows earlier in the month.

Other products also weakened:

• Spot ether funds posted about $98 million in net outflows.
• Newly launched XRP exchange-traded products saw around $40 million in outflows, which fund trackers described as their first negative day since inception.

Analysts: normalization, but leverage magnified the move

Despite the negative prints, several market participants said the moves looked more like portfolio housekeeping after a strong start to the year than a wholesale retreat from digital assets.

“BTC ETF outflows look more like post-inflow normalization than risk-off,” said Vincent Liu, chief investment officer at quantitative trading firm Kronos Research. “Institutions are rebalancing exposure, not exiting conviction.”

Nick Ruck of LVRG Research also characterized the redemptions as “normal profit-taking and portfolio rebalancing” after the January inflow burst and an extended run-up in bitcoin’s price toward the mid-$90,000s.

Still, the swing in flows had a swift impact on prices and leveraged traders. Across major derivatives exchanges, roughly $450 million to $480 million in crypto futures positions were liquidated over the past 24 hours, mostly long positions forced to close as collateral values fell. One analytics firm estimated about $150 million in bullish bets were wiped out within a single hour as bitcoin lost its grip on $90,000 on Thursday morning.

“Bitcoin’s move below $90,000 reflects fading momentum from the early-year boost,” said Illia Otychenko, lead analyst at crypto exchange CEX.IO. “Fresh allocations at the start of 2026 and supportive geopolitical headlines helped initially, but they were not strong enough to sustain a rally.”

Thinner liquidity and macro caution add pressure

Traders said the ETF outflows hit a market that was already fragile. Liquidity in spot bitcoin order books remains thinner than during prior bull runs, magnifying the effect when large, price-insensitive sellers—such as ETFs processing redemptions—hit the market at once.

“Bitcoin has struggled to sustain a move above the $90,000 level,” said Wenny Cai, chief operating officer at derivatives protocol SynFutures. She cited “broader risk-off sentiment and key macro data” as factors keeping risk appetite muted, with prices oscillating around the low $90,000s and repeated dips under $90,000.

The macro backdrop has also turned less friendly. Investors are bracing for U.S. labor data and watching developments on trade and geopolitical tensions. Analysts at several brokerages noted that bitcoin’s intraday swings increasingly mirror moves in high-growth technology stocks and other high-beta trades—leaving crypto functioning less as “digital gold” and more as a leveraged expression of risk appetite.

A volatile late 2025 and a fragile start to 2026

The pullback follows a turbulent stretch for listed crypto products in late 2025. Spot bitcoin and ether funds saw an estimated $4.57 billion in combined net outflows in November and December, a period that coincided with a drop of about 20% in bitcoin’s price.

In the first sessions of 2026, flows initially appeared to turn decisively:

• Jan. 2: U.S. spot bitcoin funds drew about $471 million, while ether funds attracted about $175 million.
• Jan. 6: Bitcoin products added roughly $697 million.

The subsequent flip to nearly half a billion dollars in outflows within days reinforced the perception that ETF flows are now the dominant marginal driver of prices.

Spillover into crypto-linked stocks

The shock also spread into traditional equities tied to the digital asset sector. Shares of publicly listed miners such as Marathon Digital and Riot Platforms, and companies that hold large bitcoin treasuries, traded lower in recent sessions alongside the token.

Exchange operator Coinbase bucked the trend on Thursday after Bank of America upgraded its stock to “buy,” sending its shares higher even as bitcoin slid.

What comes next

For individual investors, the episode underscores how crypto volatility has migrated from offshore trading venues into mainstream financial accounts, including standard brokerage accounts and some retirement plans.

The regulatory debate over spot crypto ETFs remains active. Critics argue exchange-traded products could embed speculative manias inside the regulated financial system. Supporters counter that an ETF structure improves oversight, transparency and investor protection compared with lightly regulated offshore venues.

For now, trading in the funds has appeared orderly, with no major dislocations between ETF prices and the value of underlying holdings.

Market participants said the next several sessions will be critical in determining whether this is a brief “January wobble” after outsized inflows or the start of a deeper retrenchment. Investors are watching whether bitcoin can hold support in the $88,000 to $90,000 range and whether ETF flows stabilize across bitcoin, ether and newer single-asset products.

Whatever the near-term path, this week has made one point clear: in the ETF era, the forces moving bitcoin increasingly resemble those that move any large global asset class—fund flows, liquidity, and shifts in macro risk sentiment.