In a recent update from the market, an analyst from CryptoQuant has highlighted that total outflows since the all-time high (ATH) have surged to an astonishing $5.55 billion.
This marks the most significant BTC ETF drawdown since its inception 📉
Total outflows from ATH now amount to –$5.55B pic.twitter.com/LJ02kfXBww
— Maartunn (@JA_Maartun) December 28, 2025
Is there a sense of panic among investors?
Proponents of Bitcoin often claim that ETFs embody “sticky capital.” In times of retail investor anxiety, institutional players tend to hold their positions. They assert that major firms like BlackRock and Fidelity maintain long-term investment strategies. Thus, ETF inflows are seen as indicative of “diamond hands,” acting as a stabilizing influence on market volatility and absorbing shocks passively.
However, current charts reveal a drawdown significantly more severe than the notable correction observed in March 2025. The red-shaded area illustrating capital flight has reached unprecedented lows; it appears that funds have simply exited the market.
If Bitcoin’s price (represented by the white line) continues its downward trajectory towards the grey line (the realized price for ETFs), average institutional holders may find themselves at a loss.
In previous instances of drawdowns, rapid V-shaped recoveries were common. Some institutional investors likely seized opportunities during these dips.
This downturn suggests that even institutional investors are not exempt from fear-driven selling behavior. Rather than holding onto their investments, they opted to liquidate assets—this poses challenges to the notion of unwavering support from institutions.
The SoSoValue dashboard indicates a daily net outflow totaling -$275.88 million as recorded on December 26th. Leading this trend is BlackRock’s IBIT with an alarming single-day sell-off amounting to -$192.61 million. If what was considered the “savior” for this market is offloading assets, then any safety net appears compromised.
The cumulative net inflow still stands at an impressive $56.62 billion; however, this prevailing narrative of “endless accumulation” is now facing scrutiny and testing under current conditions.