New York, Jan 25, 2026, 12:17 (EST) — Market closed
- Bitcoin slipped roughly 1.6%, falling below $88,000 during weekend trading
- U.S. spot bitcoin ETFs have seen a streak of outflows, creating a drag as the new week begins
- Traders are eyeing Wednesday’s Fed decision alongside new ETF flow data for cues on market direction
Bitcoin dropped Sunday, sliding 1.6% to $87,792 by 12:17 p.m. EST as traders braced for a packed week in global risk markets.
This shift is significant since the market’s “spot ETF” route—regulated exchange-traded funds holding bitcoin—has turned into a key entry point for major portfolios. Flows here can shift rapidly when macro tensions spike.
U.S.-listed spot bitcoin ETFs suffered $103.57 million in net outflows on Jan. 23, marking the fifth straight day of redemptions that have drained roughly $1.72 billion since Jan. 16, according to crypto.news, which cites SoSoValue data. Spot ether ETFs also faced outflows, shedding $41.74 million on the same day. 1
Some of the selling comes from hedge funds stepping away from the bitcoin “basis trade”—a play on the difference between spot prices and futures—as profits have dwindled. Bitwise chief investment officer Matt Hougan told Decrypt that sustained outflows usually signal hedge funds pulling back. He pointed to Amberdata data showing basis-trade yields have fallen below 5%, down sharply from around 17% a year ago. 2
Regulatory news remained a factor. On Friday, the U.S. Securities and Exchange Commission agreed to drop its enforcement action against Gemini’s crypto lending program, a court filing revealed, after investors were fully reimbursed. 3
New offerings keep hitting the market. Bitwise and Proficio Capital Partners launched an ETF combining gold and other metals with bitcoin, promoting it as a way to hold assets less dependent on government currencies. Proficio CIO Bob Haber described “hard currencies” as their own unique asset class. 4
Macro is the dominant driver at the moment. The Federal Reserve wraps up its Jan. 27-28 meeting Wednesday, with CME FedWatch signaling strong odds the central bank will keep rates steady at 3.50%-3.75%. Eyes will be on Chair Jerome Powell’s press conference. 5
Some key U.S. data that could shake up rate expectations are now out of sync. The Bureau of Economic Analysis delayed the advance GDP report for Q4 and December personal income and outlays from Jan. 29 to Feb. 20. 6
U.S. equities wrapped up mixed before the weekend in crypto-linked stocks. Strategy gained roughly 1.3%, whereas Coinbase slipped 2.8%. Miners Marathon Digital and Riot Platforms both finished on an uptick.
Ether, the world’s second-biggest cryptocurrency, slipped 2.6% to $2,999, reflecting the broader weakness across the market.
The tape can shift fast. When ETF redemptions ease and risk appetite picks up, bitcoin usually rebounds sharply. But if the Fed pushes back more aggressively against rate-cut expectations, those flows can just as easily fuel a deeper slide.
Wednesday’s Fed decision is the next hurdle. Traders will dissect Powell’s remarks closely, then turn their attention to daily ETF flow numbers — all while watching if bitcoin can break back above the $90,000 level that’s begun to cap gains.
