Bitcoin ETFs Experience Significant Outflows Due to Tax Loss Harvesting
U.S. spot Bitcoin ETFs have recorded eight consecutive days of institutional selling, with total outflows reaching approximately $825 million as year-end tax strategies dominate market behavior. According to analyst Alek, the sustained selling pressure stems primarily from tax loss harvesting, a temporary phenomenon expected to conclude within the coming week, alongside de-risking ahead of Bitcoin’s quarterly options expiry.
Institutions have been selling $BTC for 8 straight days now. Most of the selling is due to tax loss harvesting, which means it’ll be over in a week. Also, Bitcoin quarterly options expiry is set to happen this week, so a bit of de-risking is happening too. This is temporary…
Source: SosoValue
Regional Shift Creates New Market Dynamic
A notable geographic rotation has emerged in Bitcoin markets, with the United States becoming the dominant seller while Asian buyers step in as the primary accumulation force, as noted by analyst Ted Pillows. This is quite notable as it is a reversal that’s quite different from traditional capital flow patterns that have historically characterized crypto trading.
Source: X/@TedPillows
Whale Activity on Binance Contracts Sharply
Meanwhile, whale activity on Binance has contracted sharply, with large holder deposits plummeting nearly 50% from $7.9 billion to $3.9 billion. CryptoQuant data reveals that monthly whale inflows dropped from approximately $7.88 billion to $3.86 billion in December, effectively halving in just weeks.
Source: CryptoQuant
Bitcoin Correlation Breakdown Signals Independence
Bitcoin’s market behavior has decoupled from traditional assets, with correlation to the Nasdaq approaching zero and turning negative against gold. CryptoQuant analyst Maartunn noted that Bitcoin no longer trades like a tech stock or safe haven, instead “carving out its own market regime.”
Low Correlation Signal Bitcoin is moving independently: • Nasdaq correlation is near 0 • Gold correlation is negative BTC is no longer trading like a tech stock or a safe haven. It’s carving out its own market regime.
Source: CryptoQuant
Bear Market Scenario Gains Credibility
Notably, CryptoQuant’s Bitcoin Cycle Momentum Indicator (BCMI) has also fallen below equilibrium but remains above historical bottom zones of 0.25–0.35 seen during 2019 and 2023 cycle lows. The current reading, according to analysts, suggests markets may be transitioning into a bear phase rather than experiencing a simple pullback.
Source: CryptoQuant
At the time of writing, Bitcoin is trading at $87,838, down nearly 30% from its October peak above $126,000. For more information, please refer to the original source:
