US Bitcoin ETFs Clock Three-Day Outflow Streak as Risk Appetite Cools

Core Insights - U.S. spot Bitcoin exchange-traded funds (ETFs) experienced a three-day streak of outflows, totaling $205.5 million on Thursday and a cumulative net flow of $934.8 million over the three days, indicating a shift in trader sentiment as optimism wanes [1] - Despite the outflows, the 7-day net flow remains positive at $240.7 million, suggesting some resilience in the market [1] - Bitcoin's year-to-date gains have decreased from 8% to 4%, with the cryptocurrency trading flat at $91,100 after briefly dipping below $90,000 [2] Market Sentiment and Factors - ETF flows are seen as a lagging indicator of crypto market sentiment and can influence the price direction of assets [2] - Current outflows are attributed to tactical positioning and sentiment shifts rather than a collapse in demand, influenced by capital reallocation, resistance at $92,000, and macroeconomic uncertainties [3] - The decline in ETF demand coincides with a significant on-chain supply wall, as Bitcoin's price rose above $94,000, entering a zone with a clustered cost basis for recent top buyers between $92,100 and $117,400 [4] Market Dynamics - Analysts note rising sell-side pressure as investors regain the opportunity to exit positions without incurring losses, which may hinder a sustained bull phase [5] - The options market indicates a shift in momentum, with short-dated call skew turning negative, signaling the end of the early-January upside chase [5] - The market is expected to consolidate over the next few weeks, with a critical level to watch being the short-term holder cost basis of $98,900 for potential recovery [6]