Bitcoin ETFs bleed funds as BTC’s $100K rally stalls post-election

• Bitcoin surged past $100K but faced four consecutive days of ETF outflows.
• Ethereum gains investor traction with stable prices and $53.6M ETF inflows.

Following Donald Trump’s victory as the 47th President of the United States, Bitcoin [BTC] experienced an unprecedented bull run. The king coin surpassed the milestone $100,000 mark for the first time, reaching an all-time high of $108,000.

This surge was accompanied by massive inflows into spot BTC exchange-traded funds (ETFs), signaling strong investor enthusiasm.

Bitcoin ETFs face outflows

Nonetheless, the momentum has taken a sudden turn. Bitcoin ETFs have now recorded four consecutive days of outflows, beginning 19th December, with a staggering $671.9 million in withdrawals.

According to the latest data from Farside investors, on 24th December, BTC ETFs saw significant outflows totaling $338.4 million, primarily from major players.

BlackRock’s IBIT led the exodus with outflows of $188.7 million. It was closely followed by Fidelity’s FBTC at $83.2 million, and ARK 21Shares’ ARKB with $75 million.

Interestingly, while other ETFs reported zero activity, Bitwise’s BITB emerged as an exception. It recorded inflows worth $8.5 million, standing out amidst the broader trend of withdrawals.

The transition from inflows to outflows in Bitcoin ETFs aligned with a significant price drop, with Bitcoin slipping to as low as $94K on 24th December, reflecting waning institutional interest.

What could be the possible reason behind this?

Here, it is worth noting that this decline comes amid growing predictions of a potential market slowdown.

Historical data on U.S. election year trends suggests that the current rally may lose momentum following Trump’s inauguration on 20th January 2025.

For context, historical analysis by Bloomberg and Macrobond Financial indicates a recurring trend in U.S. markets, where assets like stocks and cryptocurrencies, including Bitcoin, typically experience a post-election rally.

However, this momentum often diminishes once the President-elect assumes office. This has further fueled concerns about the current market’s ability to sustain its upward trajectory, raising questions about Bitcoin’s performance in the months following Trump’s inauguration.

Despite these concerns, Bitcoin’s latest price movements indicate a potential shift. According to the latest data from CoinMarketCap, BTC was trading at $98,052.98, reflecting a 4.18% surge in the past 24 hours.

This uptick could hint at a reversal of fortunes for Bitcoin ETFs, which have faced a challenging period in recent days.

Ethereum takes the spotlight

Meanwhile, the spotlight has shifted to Ethereum [ETH]. Spot Ethereum ETFs recorded inflows of $53.6 million, underscoring a growing investor preference for Ethereum over Bitcoin in the current market climate.

On the price front, Ethereum maintains stability around $3,400, while Bitcoin inches closer to the critical $100,000 threshold, rallying towards its $99,000 resistance level.

Thus, while the market remains uncertain, signs of recovery hint at a strong year-end finish.