In a recent market update, CryptoQuant analyst has noted that the total outflows from the all-time high (ATH) have now reached a staggering $5.55 billion.
Are investors panicking?
Bitcoin evangelists often argue that ETFs represent “sticky capital.” When retail investors panic, institutions hold. They claim that giants like BlackRock and Fidelity have long-term horizons. Therefore, ETF flows are “diamond hands.” It is viewed as a stabilizing force that dampens volatility and absorbs market shocks (passively).
At the same time, the chart displays a drawdown significantly deeper than the major correction of March 2025. The red shaded area, which represents the magnitude of capital flight, has plunged to a new record low. The money has just left
If the white line (the Bitcoin price) continues to plummet toward the grey line (the ETF realized price), average institutional holders will be underwater.
Previous drawdowns, for comparison, saw rapid V-shaped recoveries. Some institutional investors likely rushed to buy the dip.
However, this crash indicates that institutional investors are not immune to fear. The capital was “flushed” rather than held. This, of course, challenges the thesis of perpetual institutional support.
The SoSoValue dashboard reveals a daily net outflow of -$275.88 million as of Dec 26. The bleeding is led by the market leader, BlackRock’s IBIT, which dumped -$192.61 million in a single day. If the supposed “savior” of the market is selling, the safety net is gone
The cumulative net inflow remains at a massive $56.62 billion, but the narrative of “eternal accumulation” is now being tested
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