Connect with us

Crypto World

Real Reason Why Bitcoin and Ethereum ETFs are Bleeding Now

Published

on

Real Reason Why Bitcoin and Ethereum ETFs are Bleeding Now

The US Spot Bitcoin and Ethereum ETFs are seeing sustained outflows as investors rotate capital into international equities. Both crypto ETFs have seen only 2 weeks of positive inflows so far in 2026.

The shift comes amid rising Treasury yields, a resilient US labor market, and record inflows into global ex-US stock funds.

Sponsored

Sponsored

Advertisement

Money is Shifting to International ETF Markets

Over the past several weeks, US spot Bitcoin ETFs have moved into clear net outflow territory. Total assets have dropped sharply from recent highs near $115 billion to roughly $83 billion. 

Ethereum ETFs show an even steeper contraction, with assets declining from around $18 billion to near $11 billion.

This is not random volatility. It reflects capital leaving the asset class.

US Bitcoin ETFs Weekly Inflow In 2026. Source: SoSoValue

At the same time, international equity ETFs recorded their strongest inflows in years. 

January saw record allocations into global ex-US funds, which absorbed roughly one-third of total ETF inflows despite representing a much smaller share of total assets.

Advertisement

That signals major rotation.

Sponsored

Sponsored

Institutional investors appear to be trimming exposure to crowded US growth trades — including crypto — and reallocating to cheaper overseas markets amid improving macro conditions abroad.

Advertisement

Meanwhile, stronger US jobs data pushed Treasury yields higher. Higher yields tighten financial conditions and increase the attractiveness of bonds relative to risk assets. 

Bitcoin and Ethereum, which trade as high-beta liquidity plays, tend to weaken when capital moves toward safer or yield-generating assets.

The combination creates a structural headwind.

International ETF Market Net Flow Over the Past Year. Source: ETF Trends

Crypto ETFs were a major source of demand in 2024, amplifying upward price moves through sustained inflows. 

Now that mechanism is reversing. Instead of reinforcing rallies, ETFs are acting as distribution channels.

Advertisement

This does not invalidate the long-term crypto thesis. However, it weakens the short-term liquidity backdrop.

Until capital rotation slows or macro conditions ease, ETF outflows may continue to weigh on Bitcoin, Ethereum, and the broader crypto market.

Source link

Advertisement
Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Crypto World

Record-high Bitcoin Orderbook Asks Warn Of Price Correction

Published

on

Bitcoin Price, Markets, Cryptocurrency Exchange, Derivatives, Financial Derivatives, Bitcoin Futures, Price Analysis, Market Analysis

Bitcoin (BTC) appears to have reclaimed $70,000 as support, although the market remains cautious as technical charts indicate a setup resembling the bull trap that occurred in January 2026.

Bitcoin’s sell-side liquidity has expanded sharply during the latest range retest. According to crypto trader Ardi, Bitcoin ask orders reached a two-month high. The trader said,

“Asks on Bitcoin just hit a 2-month high. $1.57B in sell-side liquidity stacked above price vs $1.125B in bids below.”

Bitcoin Price, Markets, Cryptocurrency Exchange, Derivatives, Financial Derivatives, Bitcoin Futures, Price Analysis, Market Analysis
Bitcoin orderbook analysis by Ardi. Source: X

Within a 5% band around the spot price, the sell orders exceed demand by roughly 40%, creating a heavier supply layer above the market price. At the same time, the bids form a thinner support cushion below BTC price.

Ardi noted the last comparable setup occurred in January after Bitcoin briefly broke above $98,000. A similar sequence followed Bitcoin’s recent move above $72,000 before the price slipped back toward the middle of its range. Elevated ask liquidity during a retest often signals that traders are using rebounds to take profit.

Another positioning metric also turned in the same direction. The 30-day moving average of Bitcoin’s net taker volume remained positive at $83 million in March, indicating increased buying activity through market orders.

Advertisement
Bitcoin Price, Markets, Cryptocurrency Exchange, Derivatives, Financial Derivatives, Bitcoin Futures, Price Analysis, Market Analysis
Bitcoin net-taker volume. Source: CryptoQuant

Related: Bitcoin price analysis warns of potential dip after $72K liquidity sweep

Will BTC’s underwater supply cap its rebound?

Bitcoin short-term holders’ (STHs) cost-basis data shows the average holder entered the market at significantly higher prices. The STH realized price, which tracks the average acquisition price of coins held for under six months, sits near $88,900.

According to Bitcoin researcher Axel Adler Jr., the largest supply cluster lies between $86,000 and $99,000, where many coins were accumulated between November 2025 and February 2026. This range forms the main breakeven area for a large share of the short-term market, making it a key market inflection zone.

On the positive side, realized profit and loss data shows selling pressure has begun to reduce. Crypto analyst Darkfost noted about $611 million in realized losses against $346 million in profit last week, bringing net weekly profit-and-loss to -$264 million.

That figure is far lower than the $2 billion weekly loss recorded during the February drop below $60,000.

Advertisement
Bitcoin Price, Markets, Cryptocurrency Exchange, Derivatives, Financial Derivatives, Bitcoin Futures, Price Analysis, Market Analysis
Bitcoin realized loss 7-day average. Source: CryptoQuant

Compared with January’s retest, Bitcoin price currently sits much further below the main short-term cost-basis cluster. That distance limits the amount of breakeven selling that typically appears during smaller rallies.

As a result, many short-term holders may prefer to wait for higher prices, potentially closer to $86,000, rather than selling at a loss after holding through a month-long consolidation.

A move back above the $70,000 to $72,000 range eases part of the near-term selling pressure, but a more meaningful shift may require Bitcoin to reclaim the $86,000 to $89,000 range, where most of the short-term holders reach breakeven.

Related: Strategy records biggest STRC issuance day with estimated 1,420 BTC buy