Bitcoin dropped by 0.9% to reach $87,113, and any kind of rebound was not sustainable, as the trading volumes were low, and the outflows in ETFs continued to increase.
The cryptocurrency did not again surpass the $90,000 mark, which made the market participants adopt caution as the financial year came to an end.
U.S. spot Bitcoin ETFs experienced the first week with net withdrawals around half a billion dollars, which reflects a declining institutional demand after the prior few months showed a strong inflow of funds.
It has total ETF assets of $116.58 billion as of 26 December 2025 which is less than their historical peak and exacerbates already tight liquidity positions.
Bitcoin has not been successful in operating as a risk asset like equities, as well as a safe-haven to rely on in a recent wave of macroeconomic uncertainty, despite being marketed as digital gold.
The ETF outflows were quickening in late November and December which suggests that there was a larger shift of funds into other areas and supports a negative investor mindset.
A large influx of Federal Reserve rate-cut in 2026 has been priced in by markets with the implied probabilities at 85.1%.
There is a possibility that such a policy action would address bond yields and increase the relative appeal of non-yielding assets, like Bitcoin.
In the event that ETF outflows, traders are observing the trading mark of 95,000 that is the zone of resistance. Looking ahead, the ETF flow will be one of the most important price indications on the institutional mood and its future price direction.
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