🔥💥Bitcoin ETF Capital Rotation
Institutional De-risking: Since early December, the Bitcoin spot ETF sector has experienced a marked shift in sentiment, with cumulative net outflows surpassing $700M as institutional participants engage in year-end tax-loss harvesting and pre-holiday liquidations.
Sell-Side Volatility Catalyst: This sustained exit from major vehicles like BlackRock’s IBIT has introduced a substantial sell-side imbalance, intensifying short-term price turbulence and pinning the asset below key psychological resistance levels.
Sentiment Precedence: Market participants should interpret these redemption flows as a leading indicator of institutional risk-appetite; the "big money" positioning often recalibrates ahead of technical price action, signalling a move toward cautious capital preservation.
Liquidity Outlook: As we approach quarterly options expiry, monitoring these fund flows remains paramount, as a stabilization in ETF redemptions will be the primary prerequisite for any meaningful structural trend reversal in the new year...
