Bitcoin ETFs See Largest Drawdown Since Launch
Analysis
Price Impact
HighBitcoin etfs have experienced their largest drawdown since launch, with total outflows reaching $5.55 billion. this significant capital flight, including substantial selling from blackrock's ibit, challenges the 'sticky capital' thesis and indicates strong selling pressure from institutional investors.
Trustworthiness
HighThe data is sourced from reputable analytics firms cryptoquant and sosovalue, reporting concrete outflow figures and real-time institutional selling activity, as presented by a crypto news outlet.
Price Direction
BearishThe record institutional outflows, especially from major players like blackrock, signify a breakdown in the 'institutional diamond hands' narrative. if the price continues to drop towards the etf realized price, average institutional holders will be underwater, suggesting further selling pressure or a lack of buying support.
Time Effect
ShortThe reported outflows are current and immediate, indicating strong selling pressure that is impacting the market in the short term. the challenge to the institutional 'safety net' could have immediate price consequences.
Original Article:
Article Content:
Cover image via www.freepik.com Read U.TODAY on Google News 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. Advertisement This is the largest BTC ETF drawdown since launch 📉 Total outflows from the ATH now sit at –$5.55B pic.twitter.com/LJ02kfXBww — Maartunn (@JA_Maartun) December 28, 2025 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). HOT Stories Schiff Claims Bitcoin 'Wastes' Energy Crypto Market Prediction: Bitcoin Could Spike Above $90,000, Shiba Inu (SHIB) Hits Hidden Reversal Level, Will Ethereum's (ETH) New Year Pump Happen? Fidelity’s Macro Guru Turns Bearish on Bitcoin Morning Crypto Report: Legendary Trader Speaks out on $24,111 Bitcoin Anomaly on Binance, Cardano's Hoskinson Calls out New Project and Brings up XRP, Dogecoin (DOGE) Posts 'Naughty List' 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. Advertisement You Might Also Like Sat, 12/27/2025 - 19:24 Bitcoin (BTC) Price Analysis for December 27 By Denys Serhiichuk 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. Advertisement 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. #Bitcoin News