BTC drops below $80,000 following $1.6 billion in monthly ETF outflows, third-worst month on record

U.S. spot Bitcoin ETFs experienced approximately $1.49 billion in net outflows in the final week of January, culminating in total monthly redemptions of about $1.6 billion, marking the third-largest monthly sell-off in history for these products. This selling pressure caused Bitcoin's price to drop below $80,000 for the first time since April of the previous year, with BTC trading around $77,800. The synchronized selling across Bitcoin and Ether ETFs suggests institutional investors were broadly reducing crypto exposure, possibly influenced by macroeconomic factors like the selection of Kevin Warsh as the next Fed chair and geopolitical tensions. While Ether ETFs also saw significant outflows ($353 million), newer altcoin ETFs showed resilience, with Solana ETFs recording $105 million in net inflows and XRP ETFs seeing modest inflows despite a late-month outflow spike. Despite the short-term volatility, institutional interest remains, evidenced by Morgan Stanley filing for spot Bitcoin and Solana ETFs.

(Source：The Block)