U.S. spot Bitcoin ETF outflows in 2026 have hit a startling new peak, with investors pulling over $1.33 billion from the funds in a single week. This massive institutional retreat—the most significant since February 2025—has sent shockwaves through the crypto market, dragging the BTC price below $89,000. As risk-off sentiment grips global finance, the digital asset sector faces its first major test of the year.
Record Weekly Outflows Shake Market Confidence
The week ending January 23, 2026, will be remembered as a sober reality check for the crypto bull run. According to data from SoSoValue, U.S. spot Bitcoin exchange-traded funds recorded a staggering $1.33 billion in net outflows. This exodus occurred during a shortened four-day trading week, as markets were closed Monday for Martin Luther King Jr. Day.
The selling pressure intensified rapidly midweek. Wednesday alone saw a single-day withdrawal of $709 million—the heaviest daily outflow in months—followed by another substantial exit of $483 million on Tuesday. This sharp reversal stands in stark contrast to the optimism seen earlier in January, marking the worst weekly performance for spot Bitcoin ETFs since the notorious "February Freeze" of 2025.
BTC Breaches Critical $89,000 Support Level
The heavy institutional selling has had an immediate impact on price action. BTC prices slipped below $89,000 late in the week, trading around $88,897 as support levels buckled under the weight of the sell-off. Technical analysts are now eyeing the $84,000–$86,000 range as the next critical defense line for the cryptocurrency.
Market observers attribute this spot Bitcoin ETF sell-off to a broader shift in global risk appetite. Rising concerns over a potential Japanese bond crisis and escalating geopolitical tensions have prompted investors to flee risk assets. "The correlation between traditional market jitters and crypto flows is undeniable right now," noted one market strategist. "When liquidity tightens in global bonds, we see an almost immediate reflex in crypto portfolios."
Institutional Giants BlackRock and Fidelity Lead the Exodus
Even the industry's heaviest hitters were not spared from the correction. BlackRock’s iShares Bitcoin Trust (IBIT), typically a bastion of steady inflows, led the negative momentum with a massive $537 million in weekly outflows. Fidelity’s Wise Origin Bitcoin Fund (FBTC) followed closely, shedding $451 million over the same period.
Ethereum ETFs Follow Suit
The bearish sentiment wasn't limited to Bitcoin. Ethereum ETFs also mirrored the trend, recording $611 million in net outflows. This synchronized withdrawal suggests a broad-based institutional crypto outflow rather than a strictly asset-specific rotation. Despite these short-term setbacks, the total cumulative net inflows for Bitcoin ETFs since their inception remain robust at over $56 billion, indicating that long-term institutional thesis likely remains intact despite the current volatility.
Bitcoin Price Prediction: What Lies Ahead for January 2026?
As traders navigate this crypto market correction news, the immediate focus shifts to stabilization. If Bitcoin fails to reclaim the $89,000 level promptly, bears may push for a test of the $84,000 zone. However, historical data offers a glimmer of hope: similar outflow events in early 2025 were often followed by sharp accumulation phases once macroeconomic fears subsided.
For now, caution is the watchword. With BTC support levels for 2026 being tested early, the next few trading sessions will be pivotal in determining whether this is a temporary flush-out or the start of a prolonged winter for digital assets.