Bitcoin ETFs Lose $825M in Five Days as Market Turns Cautious

Highlights:

• Spot Bitcoin ETFs lost $175 million on Wednesday, totaling $825 million over five days.
• BlackRock, Grayscale, and Fidelity led withdrawals, showing weaker institutional investor sentiment.
• Analysts warned Bitcoin may fall toward $40,000 despite short‑term optimism.

Spot Bitcoin ETFs in the United States lost $175.3 million on Wednesday as investors reacted to low liquidity and upcoming options expiries. According to Farside Investors, this is the fifth day in a row of outflows. These significant outflows raise doubts among investors about Bitcoin reaching $100,000 soon.

BlackRock’s iShares Bitcoin Trust (IBIT) led outflows, losing $91.4 million after $157.3 million the day before. Grayscale Bitcoin Trust ETF (GBTC) dropped $24.6 million, and Fidelity Wise Origin Bitcoin Fund (FBTC) lost $17.2 million. Other funds like Bitwise, Ark 21Shares, VanEck, and Franklin Templeton also had outflows. Total ETF holdings fell from $62.7 billion to $56.8 billion, which shows December’s decline in institutional capital.

Institutions Drive Bitcoin ETF Outflows Ahead of Year-End

Bitcoin institutional investors continued selling before the holidays as Wall Street stayed open. Net outflows of $175.3 million on Wednesday reflect the same trend over the past five trading days. Over this period, ETFs lost a total of $825.7 million. The only exception was December 17, which saw $457.3 million in inflows. Analysts say seasonal factors largely explain this weak performance.

According to SoSoValue, on Dec. 24 (ET), U.S. spot Bitcoin ETFs recorded total net outflows of $175 million. The BlackRock spot Bitcoin ETF IBIT saw the largest single-day net outflow among Bitcoin spot ETFs at $91.37 million. Spot Ethereum ETFs posted total net outflows of… pic.twitter.com/bWlOb0Hrd0

— Wu Blockchain (@WuBlockchain) December 25, 2025

Trader Alek commented on X that most of the selling is caused by tax loss harvesting and expects it to end within a week. He also said that Friday’s $23 billion BTC options expiry may be affecting institutional risk appetite. Alek added that this situation is temporary and institutions are likely to return to buying soon.

Institutions have been selling $BTC for 8 straight days now.

Most of the selling is due to tax loss harvesting, which means it'll be over in a week.

Also, Bitcoin quarterly options expiry is set to happen this week, so a bit of de-risking is happening too.

This is temporary… pic.twitter.com/h6FO3UEGST

— Alek (@Alek_Carter) December 24, 2025

A recent chart showed Bitcoin falling mostly during US trading hours. The Coinbase Premium, comparing BTC prices on Coinbase and Binance, stayed negative in December. Crypto analyst Ted Pillows said the US is selling most Bitcoin, while Asia is buying the most.

Experts Predict Bitcoin Could Fall Amid Market Caution

Analysts have issued warnings about possible deeper corrections. Veteran trader Peter Brandt and Tom Lee’s Fundstrat predicted that Bitcoin could drop to $60,000.

According to @_FORAB, Tom Lee's fund, Fundstrat, stated in its latest 2026 cryptocurrency strategy advice to internal clients that a significant correction is expected in the first half of the year, completely contradicting Tom Lee's public statements.

The internal report sets… pic.twitter.com/HbRoNzr85z

— Wu Blockchain (@WuBlockchain) December 20, 2025

The Bank of Japan’s rate hike has fueled concerns about a potential drop in Bitcoin in early 2026. Crypto analyst Ali Martinez highlighted that Bitcoin has historically fallen an average of 60% after breaking below the 50-week moving average. He projected a target of $40,000 if history repeats itself.

The last three times the monthly MACD turned bearish, Bitcoin $BTC dropped about 60% on average.

If that repeats, the chart points to $40,000. pic.twitter.com/yu7Sm2MBvb

— Ali Charts (@alicharts) November 24, 2025

Cheds Trading estimates that Bitcoin could bottom between $35,000 and $45,000. He also criticized Bloomberg senior commodity strategist Mike McGlone’s $10,000 forecast, calling it a “fundamental misunderstanding.” This reflects the ongoing disagreement among experts about where Bitcoin’s floor might be.

$BTC will bottom 35-45k

— Cheds Trading (@BigCheds) December 17, 2025

Such bearish forecasts are a result of macroeconomic uncertainty, unrealized losses on the part of the short-term investors, and the possibility of prolonged risk-off sentiment during the forthcoming year. This is because investors remain cautious due to mixed signals observed in the crypto markets as well as the traditional markets.

At the time of writing, Bitcoin is trading at $87,459, with an intraday low of $86,411 and a high of $87,956. Trading volume has decreased by 33% over the past 24 hours, which reinforces the cautious sentiment in holiday markets.