Three-day Bitcoin ETF outflow streak signals cautious investor sentiment as BTC price drops below $90,000
Bitcoin ETFs started 2026 with strong optimism, attracting over $1 billion in net inflows during the first two trading days. However, the surge proved short-lived, with a three-day outflow streak of $1.128 billion nearly erasing early gains, signaling a shift in investor sentiment.
The recent ETF trends underline a lack of conviction buying among institutional investors. While early inflows suggested renewed risk appetite, the subsequent outflows reflect cautious positioning and rotation within portfolios rather than long-term confidence.
Bitcoin prices mirrored this cautious sentiment, falling from highs above $94,600 to lows below $89,300, and settling near $90,951. Broader cryptocurrency indices, including DeFi and memecoins, also retraced earlier gains, highlighting growing risk aversion in the market.
Upcoming U.S. macroeconomic events, including December’s nonfarm payrolls report and a Supreme Court ruling on tariffs, are expected to add volatility. Economists forecast 55,000 new jobs in December, a slowdown from November, with unemployment slightly dipping to 4.5%. Average hourly earnings are projected to increase 3.6% year-on-year, potentially influencing Federal Reserve policy and investor appetite for risk assets, including Bitcoin.
The data suggest that while Bitcoin ETFs remain a popular investment tool, short-term market dynamics are driving cautious trading rather than sustained bullish momentum.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.