Spot Bitcoin ETF Outflows Hit $2.9B Amid Market Turmoil
By John Nada·Feb 5, 2026·3 min read
Bitcoin ETF outflows have reached $2.9 billion as the price drops below $73,000, signaling market turmoil. Traders are exiting amid fears of further declines.
Heavy outflows from Bitcoin exchange-traded funds (ETFs) are signaling a downturn in the crypto market, with a staggering $2.9 billion exiting these funds over just 12 trading days. This comes as Bitcoin (BTC) dropped below $73,000, reflecting broader market trends influenced by a tech stock sell-off and disappointing U.S. employment data.
According to Cointelegraph, the average daily net outflow from U.S.-listed Bitcoin ETFs since January 16 reached $243 million, coinciding with a significant price rejection at $98,000 on January 14. The market has since corrected by 26% within three weeks, leading to $3.25 billion in liquidations for leveraged long BTC futures. Many leveraged positions have been wiped out, particularly those exceeding 4x, unless additional margin has been deposited.
Some market participants attribute the recent crash to the aftermath of the $19 billion liquidation on October 10, 2025. This incident was reportedly caused by technical glitches at Binance, which acknowledged issues during the sell-off and compensated affected users with over $283 million. Haseeb Qureshi, managing partner at Dragonfly, noted that failed liquidations at Binance affected market makers, who now require time to recover.
The report pointed out that cryptocurrency exchanges’ liquidation mechanisms lack the self-stabilizing features found in traditional finance. This focus on minimizing insolvency risks rather than stabilizing the market has led to a series of adverse effects, which Qureshi described as a long series of “bad things” that the market historically recovers from.
Current Bitcoin options metrics also reflect bearish sentiment among professional traders. The BTC options delta skew reached 13%, indicating a lack of confidence in Bitcoin’s price stabilizing at the $72,100 level. This pessimism is exacerbated by fears of increased competition in the tech sector, particularly as companies like Google and AMD introduce proprietary AI chips.
Rumors surrounding Bitcoin sales and Binance's solvency have further unsettled investors. Specifically, a purported $9 billion Bitcoin sale attributed to quantum computing risks was denied by Galaxy Digital’s head of research. Additionally, concerns about Binance’s solvency emerged after the exchange experienced technical issues that temporarily halted withdrawals. However, on-chain metrics indicate relatively stable Bitcoin deposits at Binance.
As uncertainty looms over macroeconomic trends, many traders have opted to exit cryptocurrency markets, complicating predictions about further downward pressure on Bitcoin’s price due to ETF outflows. This volatile environment underscores the challenges facing Bitcoin and the broader cryptocurrency market.
In conclusion, the recent $2.9 billion outflow from Bitcoin spot ETFs highlights a significant loss of confidence among investors, exacerbated by broader market issues and technical disruptions. Understanding these trends is crucial for navigating the current landscape of cryptocurrency investments.