Bitcoin's Path to New Highs Threatened by $1.3 Billion Exodus
By John Nada·Jan 28, 2026·2 min read
Bitcoin's journey to a new record faces hurdles after a $1.3 billion ETF outflow raises concerns about institutional demand. Upcoming Fed decisions could be crucial.
Bitcoin's trajectory towards a new all-time high is fraught with uncertainty following a staggering $1.3 billion outflow from U.S. spot Bitcoin ETFs in late December 2025. According to CryptoSlate, the outflows highlight the volatility of institutional demand in the post-ETF era. A rough start to January 2026 saw an additional $681 million shed by spot ETFs, underscoring how quickly sentiment can shift. Notable sessions included significant redemptions of -$486.1 million and -$398.8 million on consecutive days.
Inflows returned briefly on January 14, with about $840 million as Bitcoin traded above $97,000, but a late-January reversal led to another $1.32 billion in outflows, raising questions about the sustainability of recent inflows. The approval of spot Bitcoin ETFs in 2024 has reshaped market dynamics, making ETF flows a critical indicator of demand and supply.
The upcoming FOMC meeting on January 28, 2026, stands as a pivotal moment; with a 97% probability of no interest rate changes, traders are left to wonder if recent inflows signal a new trend or if the market will revert to tactical positioning. Three potential paths to a new all-time high emerge, ranging from a swift recovery fueled by persistent ETF demand to a longer cycle that respects historical patterns.
Ultimately, how the market reacts to macro conditions and ETF flows will determine Bitcoin's next move. A clear takeaway is that while Bitcoin has the potential for growth, current market dynamics are anything but stable, requiring careful navigation amidst the turbulence.