Major ETF Outflows Signal Bear Phase: Bitcoin and Ethereum Dropping as Institutional Selling Intensifies

airdrop_whisperer · 2026-01-05T14:17:20+00:00

The crypto market signals a bear cycle, with institutional sell-offs driving Bitcoin and Ethereum down. Key indicators suggest ongoing stress and weak demand, indicating potential further declines as bears dominate trading sentiment.

airdrop_whisperer

2026-01-05 14:17:20

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The crypto market is showing unmistakable signs of entering a bear cycle, with Bitcoin and Ethereum experiencing considerable downward pressure this week. Technical indicators and capital flow data paint a concerning picture for bullish traders.

Institutional Pressure Mounts Through ETF Liquidations

Significant institutional selling has emerged as a key factor in the recent market decline. Major asset managers, including BlackRock, have initiated substantial withdrawals, triggering substantial net outflows across crypto exchange-traded funds. Bitcoin ETFs alone recorded $330 million in net outflows, while Ethereum ETF redemptions reached $11 million during the same period. These figures underscore a shift in institutional sentiment toward risk reduction.

Market Data Reflects Ongoing Stress

Bitcoin currently trades at $92.77K with a modest 24-hour gain of +1.55%, suggesting limited buying conviction despite the price level. Ethereum’s performance mirrors this cautious sentiment, standing at $3.16K with a marginal +0.36% daily increase. The relatively flat trading range despite heavy selling pressure indicates weak demand at support levels.

Technical Analysis Points to Bear Territory

According to CryptoQuant’s research, the Bitcoin Combined Market Index (BCMI) has slipped below equilibrium levels, a bearish configuration. Critically, however, the index has not yet reached historically significant bottom zones, suggesting further downside risk remains possible. This technical backdrop implies the market may still be in transition rather than finding capitulation floors.

What This Means for Traders

The convergence of institutional outflows, technical deterioration, and muted retail demand creates an environment where bears maintain control. While the market hasn’t reached panic-selling extremes, the dropping prices combined with shrinking conviction suggest caution remains warranted for leveraged positions.

BTC0,52%

ETH-0,46%

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