- Investors withdrew $1.82 billion from Bitcoin, Ether ETFs amid uncertainty.
- Bitcoin and Ether face declines despite short-lived January rally.
- Expert Eric Balchunas calls Bitcoin market negativity “short-sighted” amid pullback.
Over the past five trading days, US-based spot Bitcoin and Ether exchange-traded funds (ETFs) have seen a significant withdrawal of $1.82 billion. This trend follows a general decline in market sentiment, which has continued despite signs of a potential recovery in the crypto market.
Between Monday and Friday, Bitcoin ETFs saw outflows of $1.49 billion, while Ether ETFs experienced $327.1 million in withdrawals according to farside. This decline comes as the spot price of both Bitcoin and Ether has been falling. In the last week, Bitcoin dropped 6.55%, and Ether fell 8.99%, with Bitcoin now trading at $83,400 and Ether at $2,685. These movements reflect an ongoing sense of caution among investors, who remain wary of the volatile crypto landscape.
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Earlier in January, Bitcoin had surged by 7% amid speculation around the US CLARITY Act, which briefly reignited optimism in the market. However, this rally was short-lived, and the price of both Bitcoin and Ether has faced downward pressure since then. The Crypto Fear & Greed Index, which tracks investor sentiment, soared to a “Greed” score of 61 in mid-January before falling sharply in the following days.
Expert Insight on Bitcoin’s Market Position
Despite the recent market setbacks, ETF analyst Eric Balchunas has stated that the current pessimism surrounding Bitcoin’s performance is “very short-sighted.” He pointed out that Bitcoin had significantly outperformed other assets in 2023 and 2024, a performance that should not be dismissed. Balchunas highlighted that gold and silver, despite hitting all-time highs, still lag behind Bitcoin’s long-term performance.
He believes that Bitcoin’s recent pullback is part of the natural process of price correction and institutional adaptation. Balchunas added that Bitcoin’s price action was merely taking a breather after a period of rapid institutionalization, a trend that could reignite once the broader narrative catches up.
Although traditional assets like gold and silver reached their highest levels in years, they too experienced volatility. For example, gold fell 8% in a single day, and silver plunged nearly 27%. These market movements have mirrored the cryptocurrency market’s fluctuations, where investor sentiment can shift rapidly.
Despite short-term challenges, many market experts remain optimistic about the future of Bitcoin and Ether. They believe that the increasing institutional adoption of cryptocurrencies and growing demand for crypto ETFs could push the market toward new highs once the current uncertainty subsides.
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