Bitcoin ETFs Bleed $1.26B, But Santiment Says the Signal Is Not Clearly Bearish

Highlights:

• Bitcoin ETFs saw $1.26 billion in weekly outflows as Santiment flagged growing retail fear.
• Santiment says Bitcoin sentiment looks overheated despite weak ETF flows and rising market caution.
• Ethereum fear increased, but Santiment says wallet growth and development activity remain strong.

Bitcoin ETF outflows have returned to the center of the crypto market debate after U.S. spot Bitcoin funds recorded $1.26 billion in net withdrawals across six trading sessions from May 18 to May 22. Crypto sentiment platform Santiment, in its weekly crypto summary published on Friday, said the outflow streak may not be a simple bearish signal. Instead, the analytics firm said it may show retail investors losing patience after Bitcoin failed to hold above $80,000 in May.

“Bitcoin ETFs have logged outflows on 9 of the past 10 days, with retail appearing to lose patience after BTC’s failed push above $80K,” the firm stated. Bitcoin was trading at $74,652 at the time of publication, down from its May 16 peak of $79,052, according to CoinMarketCap. 

the spot bitcoin ETP outflows continued this week with -$1.2b making it the 3rd most negative week of 2026 pic.twitter.com/f7ri6sVAqb

— Alex Thorn (@intangiblecoins) May 23, 2026

Bitcoin Data Shows Fear and Euphoria at the Same Time

Santiment said the market is not sending one clean signal. Bitcoin ETF outflows look bearish on the surface, but other data give a more complex picture. The firm reported that crypto social activity rose sharply during the week. Bitcoin discussion increased 21%, while Ethereum discussion rose 31%. XRP mentions nearly doubled from the previous week. Chainlink, Solana, Dogecoin, and Zcash also saw higher discussion levels.

Santiment said broad social attention can often come before stronger market moves. However, it can also increase volatility when too many traders rush into the same assets at the same time. Bitcoin sentiment also reached a level that may call for caution. Santiment said Bitcoin’s bullish-to-bearish comment ratio climbed to 2.23, the highest level of the year. The firm said the previous two strongest positive-ratio days this year came before short-term price pullbacks.

Santiment wrote that “the current euphoria contrasts sharply with the bearish ETF flow picture and warrants caution.” This shows why traders may need to look at several signals instead of only tracking price or ETF flows.

Ethereum Sentiment Weakens, But Network Data Remains Strong

Ethereum also remained a major part of Santiment’s weekly report. Negative discussion intensified after several high-profile stories, including Harvard’s sale of an $87 million ETH ETF stake, the Ethereum Foundation researcher’s exit, and David Hoffman stepping back from ETH.

Still, Santiment said Ethereum’s network data does not support the idea that the network is dying. The firm reported that Ethereum has 192.92 million non-empty wallets, compared with about 59 million for Bitcoin. Non-empty wallets are addresses that hold some amount of a crypto asset.

Santiment said, “The network-is-dying narrative is not supported by the underlying data on holders or activity.” This gives Ethereum a stronger fundamental picture than the current social mood suggests.

Development activity also remains important. Santiment said Ethereum development activity has increased 150% over five years. BNB Chain rose 222%, while Polygon gained 246% over the same period. Even so, Ethereum still leads in total development activity by a wide margin.

Whale Selling Keeps Short-Term Risk Alive

Santiment also pointed to whale activity as a key short-term risk. Wallets holding 10 to 10,000 BTC sold about 22,823 BTC over the past four weeks. At the same time, the same group still accumulated around 87,436 BTC over the past three months.

This creates a mixed picture. The longer-term data shows that large holders have added Bitcoin overall. However, the recent four-week selling shows some caution among major wallets. Santiment said sustainable rallies usually need support from large holders. If retail buyers are the only group adding supply, the market may struggle to maintain a strong move higher.

Funding rates also flashed a warning. Santiment said Bitcoin funding rates across exchanges have been heavily long for four straight days. These levels were last seen before the late-January crash. High funding means many traders are using leverage to bet on higher prices. If the market moves against them, forced liquidations can create sharp price drops.

Overall, Santiment said the market remains divided. ETF outflows, negative MVRV readings, and Ethereum fear may support a contrarian bullish view. However, extreme bullish comments, heavy long positioning, and recent whale selling keep short-term risk high. Santiment summed up the week by saying the data shows “crossed signals rather than a clean directional thesis.”