Bitcoin Institutions Keep Selling Into Christmas, but January Optimism Builds
Bitcoin institutional outflows continued into Christmas, with U.S. spot Bitcoin ETFs posting another $175 million in net outflows on Christmas Eve. The selling extended a multi-day streak of negative flows, reinforcing the view that U.S. investors have been the dominant source of recent market pressure.
Market participants have largely attributed the weakness to seasonal factors rather than a deterioration in Bitcoin’s longer-term outlook. Year-end tax-loss harvesting and the impact of a major quarterly options expiry are widely seen as key drivers behind the sustained selling. Several traders argue that this activity is temporary and likely to fade once the holiday period ends.
Despite the near-term pressure, analysts note that negative ETF flows do not historically mark final market tops. Instead, the data suggests institutional liquidity is inactive rather than permanently exiting the market, leaving room for a potential rebound as the calendar turns and positioning resets in January.