Bitcoin ETFs, those heralds of financial modernity, are hemorrhaging $825 million, victims of the age-old tradition of tax-loss harvesting. Institutions, gripped by the cold calculus of year-end strategies, have been selling relentlessly for eight days straight.
The past week witnessed a deluge of institutional selling in U.S. spot Bitcoin ETFs, with outflows nearing $825 million across eight consecutive trading days. This market behavior, still shackled by year-end tax strategies, resembles less a rational market and more a carnival of desperation.
Alek Carter, a voice in the digital wilderness of X, posits that this prolonged selling spree is a result of tax-loss harvesting. He predicts the pressure will ease within a week, though one wonders if the market’s soul will recover. 🤔
Institutions have been selling for 8 straight days now.
Most of the selling is due to tax loss harvesting, which means it’ll be over in a week.
Also, Bitcoin quarterly options expiry is set to happen this week, so a bit of de-risking is happening too.
This is temporary…
– Alek (@Alek_Carter)
Source: Alek Carter
BlackRock: The Ringmaster of the Exodus
On December 24, spot Bitcoin ETFs saw net outflows of $175 million. BlackRock’s IBIT fund spearheaded the retreat with a staggering $91.37 million withdrawal, while Ethereum spot ETFs followed suit with $52.70 million outflows. Newer products, however, seem to endure the storm with Solana ETFs attracting $1.48 million and XRP ETFs securing $11.93 million in new funds. Solana and XRP: the cockroaches of crypto? 🪳
This week also marks the expiration of Bitcoin’s quarterly options, further spooking institutional investors. Alek Carter, ever the optimist, suggests that bidding will soon return. Fingers crossed, wallets open.
Asia: The New Capital of Accumulation
A curious geographic shift is unfolding in Bitcoin markets. While the U.S. leads the selling spree, Asian buyers have emerged as the primary accumulators. Ted Pillows, another prophet on X, notes this inversion as a departure from traditional trends. The East rises, the West falls-how poetic. 🌏
US is now the biggest seller of Bitcoin.
Asia is now the biggest buyer of Bitcoin.
– Ted (@TedPillows)
Source: Ted Pillows
Whale activity on Binance has plummeted in December, with big holder deposits down nearly 50%. Monthly whale inflows dropped from $7.9 billion to $3.9 billion. Fewer whale deposits mean less selling pressure, but one can’t help but wonder: where have all the whales gone? 🐳
Bitcoin: The Lone Wolf of Assets
Bitcoin’s market behavior has severed ties with traditional assets, achieving near-zero correlation with the Nasdaq and negative correlation with gold. On X, Maartunn observes that Bitcoin is no longer mimicking tech stocks-it’s carving its own path. Gold, meanwhile, continues its ascent, priced at over $4,500 per ounce, leaving Bitcoin languishing below $90,000. Bitcoin: the rebellious teenager of finance. 🚀
CryptoQuant’s analysis attributes this divergence to rising demand for safe assets amidst geopolitical uncertainty. Low real interest rates favor precious metals, but Bitcoin remains a wildcard. Will it rise again, or is this the beginning of a darker chapter?
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2025-12-26 14:37