Bitcoin ETFs in the U.S., including BlackRock's IBIT, saw significant outflows totaling $825.7 million over five days, ending December 24, leading to downward pressure amid thin liquidity.
The substantial outflows impact market dynamics, hinting at seasonal tax loss harvesting. Experts suggest a possible rebound post-holiday, with reduced ETF demand influencing Bitcoin and Ethereum prices.
Bitcoin ETFs experience $825 million outflows as U.S. behavior changes. BlackRock's IBIT and others see downturn.
BlackRock's IBIT Hit by $825.7 Million Outflows
BlackRock's IBIT Hit by $825.7 Million Outflows
U.S. spot Bitcoin ETFs, including BlackRock's IBIT, faced significant $825.7 million outflows. Institutional sellers showed prominent net selling behavior over five trading days. Experts cite the negative Coinbase Premium Index as a primary indicator of this trend.
BlackRock’s IBIT and similar ETFs experience substantial outflows attributed to institutional traders. Market flows of $175.3 million were noted on December 24, linked to tax loss strategies and changes in market dynamics.
Institutional Selling Reduces Bitcoin Demand Temporarily
Institutional actions led to reduced demand for Bitcoin. Analysts expect temporary changes as they see year-end tax strategies impacting ETFs. Observations indicate that influences might ease early in 2026's financial recovery phase.
Potential financial outcomes include short-term value impacts on Bitcoin and Ether. ? Price stabilizes first, flows turn neutral, and only then do inflows return, says BitBull, a Trader on X.
Year-End Selling: A Recurring Market Pattern
The phenomenon mirrors past year-end selling sprees, reinforced by tax considerations. Analysts reference a positive flow day on December 17 but note seasonal patterns reflect typical market behavior as year-end approaches.
Insights from traders indicate a reliance on historical seasonal data for forecasts. They expect institutional re-entries to the market post-tax adjustments, foreseeing the potential for increased inflows leading into the first quarter of 2026.
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