Bitcoin ETFs See $410M in Outflows as Bitcoin Dips Below $66K

TLDR

• Bitcoin ETFs experienced $410 million in outflows on Thursday, marking the second consecutive day of redemptions.
• Strong U.S. payroll data pushed Bitcoin’s price below $66,000, causing market shifts and impacting investor sentiment.
• BlackRock’s IBIT and Fidelity’s FBTC saw the largest outflows, with $157.56 million and $104.13 million redeemed, respectively.
• U.S. Bitcoin ETFs have generated $54.31 billion in net inflows since their inception two years ago, despite recent outflows.
• Institutional investors are adjusting their expectations following the strong payroll report and potential changes in Fed policy.

Bitcoin ETFs suffered another heavy blow on Thursday, seeing $410 million in outflows as Bitcoin’s price slipped below $66,000. This marked the second consecutive day of substantial redemptions for U.S.-listed spot Bitcoin exchange-traded funds (ETFs). The pullbacks came following strong U.S. payroll data that led to shifts in market expectations regarding Federal Reserve policies.

The recent outflows have added to concerns about the sustainability of Bitcoin’s market, with institutional investors pulling back. While these funds continue to represent a large portion of Bitcoin’s market cap, the pressure on these vehicles is intensifying. So far, U.S. Bitcoin ETFs have accumulated $54.31 billion in net inflows since their launch two years ago, a figure that highlights their long-term impact on the market.

Bitcoin ETFs Suffer $410 Million in Outflows

Bitcoin ETFs experienced heavy losses on Thursday, with a total of $410.37 million exiting the market. The outflows mark the second consecutive day of redemptions, with the total losses reaching $686.27 million over the two days. The pullbacks reflect a broader market reaction to stronger-than-expected payroll data, which raised concerns about the potential for a prolonged period of high interest rates.

Among the major contributors to the outflows were BlackRock’s IBIT fund and Fidelity’s FBTC, which faced $157.56 million and $104.13 million in redemptions, respectively. Other funds, such as Grayscale and Bitwise, also saw smaller outflows, totaling around $65 million. The outflows were widespread, as all products recorded zero or negative flows during Thursday’s session.

The Impact of Strong U.S. Payroll Data

The latest U.S. nonfarm payrolls report, which showed a gain of 130,000 jobs in January, exceeded market expectations of 55,000. This stronger-than-expected data is causing market participants to adjust their expectations for Federal Reserve policy. Many traders now anticipate that the Fed will keep its rates higher for longer, with no rate cuts expected until later in the year. This shift in expectations has created additional pressure on risk assets like Bitcoin.

As a result, the broader digital asset market contracted by 1.65% on Thursday, with Bitcoin trading just above $66,000. This marks a sharp decline of 47% from Bitcoin’s all-time high of $126,080, set in October 2025. Institutional investors are increasingly cautious, and some financial institutions have lowered their price targets for Bitcoin and other cryptocurrencies as a result of the ongoing market pressures.

Declining Bitcoin Forecasts from Major Institutions

Two major financial institutions, Standard Chartered and JPMorgan, have revised their Bitcoin price forecasts downward in response to the recent market developments. Standard Chartered’s updated forecast for Bitcoin has dropped to $50,000, down from its previous target of $150,000. The bank’s year-end 2026 target for Bitcoin now stands at $100,000, reflecting a more cautious outlook on the cryptocurrency.

JPMorgan also adjusted its expectations, cutting its estimate for Bitcoin’s production cost from $90,000 to $77,000. The lower estimate is attributed to a decline in hashrate and mining difficulty. Despite this reduction, JPMorgan maintains a long-term Bitcoin price target of $266,000, signaling continued confidence in the digital asset over a longer time horizon.

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