Bitcoin ETFs Face $817M Outflow as Prices Plummet to Nine-Month Low
By John Nada·Jan 30, 2026·2 min read
Bitcoin ETFs reported $817 million in net outflows, driven by BlackRock's IBIT and a drop in Bitcoin's price to a nine-month low, reflecting a risk-off market sentiment.
U.S. spot Bitcoin ETFs experienced a staggering $817 million in net outflows on Thursday, primarily driven by BlackRock’s IBIT, which saw $317.8 million in redemptions. Analysts attribute this downturn to Kevin Warsh’s potential nomination as Federal Reserve Chair, signaling a hawkish shift that has triggered significant deleveraging among arbitrage capital. Bitcoin's price drop coincided with a broader market decline, as the cryptocurrency fell to a nine-month low of $81,315, reflecting the growing risk-off sentiment among investors.
The massive ETF outflows were notably led by BlackRock’s IBIT, surpassing the combined redemptions from Fidelity’s FBTC and Grayscale’s GBTC, according to SoSoValue data. This wave of selling was fueled by a series of negative catalysts that pushed Bitcoin out of its established trading range. Analysts point to the upcoming announcement of a new Federal Reserve Chair and the disappointing financial guidance from Microsoft, which has added to the unease in equity markets.
Aurelie Barthere, Principal Research Analyst at Nansen, remarked on the renewed correlation between Bitcoin and U.S. equities, stating that Bitcoin's value plummeted alongside equities following Microsoft’s uninspiring Q4 2025 results. Tim Sun, senior researcher at HashKey Group, noted that the transition in Fed leadership is reshaping the basis trade that has underpinned ETF volumes for months. He explained that as investor sentiment shifts, capital is moving away from high-volatility assets like Bitcoin and into safer investments such as gold. This trend has further exacerbated the outflows from Bitcoin ETFs and slowed down the cryptocurrency's recovery.
The backdrop of macroeconomic uncertainty adds to the pressure. Even though a potential U.S. government shutdown was averted through a Senate funding deal, market tensions remain high due to Trump's national emergency declaration regarding oil tariffs and ongoing geopolitical tensions in the South China Sea. Barthere observed a gradual capitulation in ETF flows, options, and miner activity, indicating a significant shift in market dynamics.
Currently, Bitcoin is trading at $82,687, reflecting a nearly 6% decline over the past 24 hours, as traders await the White House's announcement on the Fed Chair nominee. The substantial ETF outflows and Bitcoin's price decline underline a critical moment for the cryptocurrency market, as investors reassess their strategies in an evolving economic landscape. As the market navigates these tumultuous waters, the implications for Bitcoin and its associated financial products could be profound, signaling a potential recalibration of risk tolerance among investors.