BTC drops below $89,000, Bitcoin and Ethereum ETFs face $713 million sell-off pressure

January 21 News, influenced by the ongoing fermentation of macroeconomic and geopolitical uncertainties, US spot Bitcoin ETFs and Ethereum ETFs experienced a total net outflow of approximately $713 million this Tuesday, marking the most significant institutional de-risking signal since 2026. Data shows that on that day, Bitcoin-related funds saw a combined outflow of about $483 million, with multiple products under pressure, reflecting institutional investors’ quick reduction of exposure amid increasing market volatility. A day earlier, similar selling pressure had already appeared, with Bitcoin ETF net outflows approaching $400 million, indicating that the withdrawals are not isolated incidents.

Regarding Ethereum ETFs, there was a net outflow of about $230 million on Tuesday, ending a five-day streak of capital inflows. Some products managed by large asset management firms experienced significant reductions in holdings, directly weakening buy support in the spot market. Against this backdrop, Bitcoin’s price briefly fell below $89,000, contrasting sharply with the high of nearly $97,000 a week ago; Ethereum also weakened simultaneously, falling below $3,000, which heightened market caution.

Several researchers linked this round of capital outflows to international geopolitical situations. Trade frictions between the US and the EU over Greenland remain unresolved, and volatility in the global bond markets, along with Japanese investors’ sell-off of government bonds, are believed to have weakened overall liquidity, further transmitting to stocks and crypto assets. Peter Chung of Presto Research pointed out that such cross-market pressures often amplify the downside of risk assets in the short term.

However, some believe this is more of a phase adjustment rather than a trend reversal. Jeff Mei thinks that although Trump’s tariff rhetoric impacted the market, historical experience shows that such positions tend to ease under market pressure. Nick Ruck of LVRG stated that the current capital outflows are more indicative of temporary de-leveraging driven by geopolitical factors, and institutional views on the long-term value of crypto assets have not fundamentally changed.

It is worth noting that on the same trading day, XRP-related ETFs also experienced net outflows exceeding $50 million, while Solana-related products recorded approximately $3 million in net inflows, indicating more refined capital reallocation. As the macro environment gradually clarifies toward 2026, the market generally expects these fluctuations to lay the groundwork for the next phase of capital inflows.