Bitcoin ETF ends seven consecutive losing days! Attracts $355 million in a single day

U.S. Bitcoin Spot ETF experienced a massive capital inflow yesterday, with net inflows reaching as high as $355 million according to sosovalue data, ending a seven-day streak of net outflows and boosting market sentiment. After a challenging period characterized by continuous capital withdrawals, the U.S. Bitcoin Spot ETF has seen a significant turnaround as investors re-enter the market with substantial funds. This positive momentum has eased market participants’ nerves, who endured several days of capital redemption during the holiday period, putting pressure on investor sentiment.

The $355 million net inflow signifies a major reversal in recent institutional capital rotation trends. This rebound occurred after ETF capital outflows accumulated to over $1.1 billion over six consecutive trading days, reflecting year-end portfolio rebalancing and reduced holiday liquidity. Market analysts attribute the recent capital outflows mainly to seasonal position adjustments rather than deteriorating fundamentals of institutional Bitcoin exposure. Related Content: Christmas “Heist”? Bitcoin Spot ETF Weekly Outflows of $782 million, Institutional Year-End “Closing” Sparks Selling Pressure Institutional Buying Returns, Is the 2026 Year-End Rally Looking Bright? After a dull December filled with selling pressure, the cryptocurrency market finally saw a glimmer of hope on the last trading days of the year. This timely boost not only stabilized Bitcoin around the $87,000 level but also injected confidence into the upcoming 2026 market sentiment. 1. Ending “Tax-Loss Harvesting” Shadow, Institutional Funds Reallocate In the past week, due to the tax-loss harvesting pressure before the U.S. tax year-end, many institutions and high-net-worth individuals chose to liquidate some positions to offset annual capital gains, leading to the longest withdrawal wave from the spot ETF since July 2025. However, as the peak selling period on December 30 winds down, buying activity has noticeably increased. BlackRock’s IBIT and Fidelity’s FBTC led the way, recording inflows of $180 million and $120 million respectively. Market analysts note that this indicates “smart money” has begun early positioning for the first quarter of 2026. The rebound in ETF capital inflows signals renewed confidence among institutional investors as market conditions stabilize. BlackRock’s IBIT and Fidelity’s FBTC, two major Bitcoin spot ETF products, have historically led capital flows and are expected to be the main drivers of this recent influx. The return of positive capital flow suggests investors may be repositioning for the new year, with trading activity expected to normalize as January approaches. 2. Bitcoin Holds Key Support, Decoupling from U.S. Stocks Begins? Encouraged by the ETF capital inflows, Bitcoin (BTC) rebounded from a low of $86,500 to briefly surpass $89,000. Notably, even as tech stocks like Nvidia experienced volatility due to cautious Fed comments on inflation, Bitcoin demonstrated strong resilience. Bitwise Chief Investment Officer Matt Hougan’s recent prediction of “Bitcoin maturation” seems to be happening. As ETFs absorb most of the circulating supply, Bitcoin’s volatility has dropped to its lowest levels in 2025, gradually shifting from a “speculative asset” to a “structural allocation asset.” 3. Three Catalysts Support Bullish Outlook for 2026 The $355 million inflow is no coincidence; analysts have summarized three main pillars supporting investor confidence: the implementation of “GENIUS,” extension of corporate savings strategies, and Federal Reserve liquidity expectations. Although the ETF has ended its seven-week losing streak, market sentiment remains highly cautious. Currently, the cryptocurrency “Fear and Greed Index” stays around 30, in the “fear” zone. Some analysts suggest this is a typical rebound after a “capitulation sell-off,” where after everyone who wanted to sell before tax season has done so, only long-term “diamond hands” remain. Yesterday’s $355 million inflow represents a vote of confidence in the “structural growth” of 2026.