The ETF "Drawdown" vs. Reality
The "largest drawdown" narrative stems from a record-breaking exodus at the end of 2025. Between November and December 2025, U.S. spot Bitcoin ETFs saw roughly $4.57 billion in net outflows.
However, context is everything:
Sticky Institutional Cash: Despite the outflows, over 90% of ETF holders have "held the line." Analysts note that the selling pressure came largely from "weak ha I'mnds" and year-end tax-loss harvesting rather than a fundamental shift in institutional belief. Price Stability: Even with billions leaving the funds, $BTC has remained remarkably stable, currently consolidating between $90,000 and $93,000. This suggests that spot demand on exchanges and corporate treasury buying (like Tether’s recent New Year’s Eve purchase of 8,888 BTC) is absorbing the ETF selling pressure
The $ETH Catch-Up
Ethereum has followed a similar path, losing about $2 billion in ETF outflows over the same year-end period. But there’s a silver lining:
Synchronized Inflows: As of this first week of January 2026, we are starting to see the first "green" sessions. When Bitcoin ETFs see positive flows, Ethereum ETFs are now mirroring them almost 1:1, showing that institutions are treating them as a "dual-major" basket.
The "Laggard" Play: Analysts are watching for $ETH to outperform $BTC in Q1 2026 as the Bitcoin ETF selling reaches exhaustion.
The $STORJ and Altcoin Factor
The mention of $STORJ is timely. In the current 2026 market structure, "DePIN" (Decentralized Physical Infrastructure) and storage protocols are benefiting from a "liquidity rotation."
The Rotation: When $BTC price stabilizes (even during ETF outflows), it gives traders confidence to move "down the risk curve."
Why STORJ? As Bitcoin and Ethereum lead on the institutional front, mid-cap utility tokens like STORJ often see spikes in volatility. With Bitcoin holding its support at $88k–$90k, the "altcoin season" mechanics are beginning to trigger, as capital seeks higher returns than the now-stable "digital gold."
Asset,Current Status,Key Level to Watch
Bitcoin ($BTC),Consolidation / Stability,"Support at $88,200"
Ethereum ($ETH),Recovering from Outflows,"Resistance at $4,800"
STORJ ($STORJ),High Volatility / Rotation,Relative strength vs. BTC
Bottom Line: The "selling pressure" from ETFs is being neutralized by a more mature market. We are moving from a "trading-driven" market to an "allocation-driven" one.
