Bitcoin experiences weekly decline as Wall Street ETF funds see significant outflows

Source: Criptonoticias Original Title: Bitcoin stumbles and turns red for its week on Wall Street Original Link: https://www.criptonoticias.com/mercados/bitcoin-tropieza-tine-rojo-semana-wall-street/

Bitcoin ETF Faces the Toughest Test Since 2026

Bitcoin spot ETF has experienced its most challenging period since 2026 this week, with outflows totaling $1.3 billion.

This financial movement mainly occurred between January 20 and 23 (due to the US Monday holiday), marking the largest weekly outflow since November last year.

Daily data shows a continuous trend of investment withdrawal: $483 million outflow last Tuesday, with a peak of $708 million on Wednesday. Although the outflows slowed over the weekend, $32 million was withdrawn on Thursday and $103 million on Friday.

The chart below shows weekly capital flows for Bitcoin spot ETFs:

This outflow was enough to cause BTC price to drop 5% during this cycle. Currently, Bitcoin is fluctuating between $89,000 and $90,000.

Bitcoin is in a correction cycle

It is worth noting that spot ETFs support their shares by purchasing and holding Bitcoin, making them a key factor in the price dynamics of digital currencies.

When investors withdraw capital, fund managers may need to sell some Bitcoin holdings to handle redemptions. This increased supply, without matching demand, exerts direct downward pressure on asset value.

This relationship between ETF activity and Bitcoin quotes stems from the operational structure of ETF issuers, who must adjust physical reserves to support circulating shares.

Historically, periods of large-scale outflows like this often precede phases of reaccumulation.

Nevertheless, Bitcoin is currently in a correction cycle, ongoing since the October report of a $126,000 all-time high. In this cautious environment, bulls are hopeful that Bitcoin will long-term gain attention as digital gold.