The US Spot Bitcoin ETF recorded net outflows of $479.7 million on Tuesday, its largest single-day outflow in weeks. This move reversed the steady inflow trend that had supported Bitcoin’s recent price stability. Investors appear to have reduced their exposure as overall market sentiment weakened and risk appetite declined across digital assets.
The Spot $BTC ETF recorded net outflows of -$479.7 million on Tuesday. pic.twitter.com/nqzf0uhjUG
— Stacker Satoshi (@StackerSatoshi) January 21, 2026
Grayscale and Blackrock lead the drawer
The majority of the outflows came from Grayscale’s GBTC, with $160.8 million in withdrawals. BlackRock’s IBIT followed with $56.9 million in outflows, and several other ETF products also recorded negative outflows. This shows that the selling pressure is not limited to one issuer, but spread across both traditional and new ETFs.
Bitcoin falls below psychological support
Bitcoin fell below the $90,000 level as ETF funds exited the market. The decline, after weeks of sideways movement, heightened concerns about a near-term correction. Although price movements remained relatively controlled, the break below key supports triggered defensive action among short-term traders.
Organizational emotions become defensive
ETF flows often reflect institutional positioning. The sudden shift to large outflows suggests that large investors are choosing to lock in profits or reduce their risk exposure. With continued macro uncertainty and geopolitical tensions, many funds are likely waiting for clearer signals before re-entering aggressively.
Past patterns suggest future volatility
Historical data shows that large ETF outflow events typically lead to increased volatility. A similar situation occurred in 2024, with sharp price movements in both directions. However, in these periods, capital returned within weeks once market confidence stabilized.
Long-term trends remain strong
Despite short-term pressures, broad-based ETF adoption trends remain strong. The total assets under management of Bitcoin ETFs as a whole remains near all-time highs. Analysts continue to see ETFs as a structural driver of long-term demand, even if short-term flows fluctuate based on sentiment.
What traders should focus on next
Traders are now watching to see if the outflow continues or reverses. Continued selling could push Bitcoin towards deeper support levels. However, a rapid recovery in ETF inflows would likely signal renewed institutional investor confidence and a possible recovery.