Bitcoin ETFs Suffer $1.3 Billion Outflow in Largest Weekly Drawdown Since November
The four-day trading week saw consistent withdrawals, contributing to a 5% drop in Bitcoin's price.
Bitcoin exchange-traded funds faced their most challenging week on Wall Street so far in 2026, recording capital outflows totaling $1.3 billion.
The wave of withdrawals, concentrated between Tuesday, January 20, and Friday, January 23, marks the largest weekly outflow since last November. The market activity followed a U.S. holiday on Monday.
A daily breakdown of the operations shows a persistent trend of divestment. The week began with a $483 million withdrawal on Tuesday, followed by the week’s peak outflow of $708 million on Wednesday. The pace of withdrawals slowed to $32 million on Thursday before closing the week with a $103 million outflow on Friday.
The ETFs suffered their largest weekly outflow so far in 2026. Source: SosoValue.
This level of outflows was sufficient to trigger a 5% drop in the price of BTC over the period. Bitcoin is currently trading in a technical range between $89,000 and $90,000.
Bitcoin Remains in Corrective Period
Spot ETFs function by purchasing and holding bitcoin to back their shares, making them a key factor in the digital currency’s price dynamics.
When investors withdraw their capital, fund managers may need to sell some of their bitcoin holdings to cover those redemptions. This increase in supply, without corresponding demand, exerts direct downward pressure on the asset’s value.
Historically, similar periods of massive outflows have preceded phases of re-accumulation.
Bitcoin remains in a corrective period since reaching its all-time high of $126,000 in October. Amid this cautious environment, bulls are hopeful that BTC will gain traction as a form of digital gold in the long term.
