In my view, the market is experiencing the most severe ETF liquidity decline seen to date.
With an average actual price of the ETF fund flow around $86,000, most of the capital poured in after the October 2025 all-time high is now in an unrealized loss position, creating significant psychological pressure on the institutional investor group.
During the same period, over $6 billion was withdrawn from the spot Bitcoin market, marking the largest ETF outflow since these products were approved.
In my view, this selling pressure is not purely panic-driven, but rather stems from a combination of systematic profit-taking and reflexive liquidation as the price structure began to break.
The positive aspect is that in the past two weeks, ETF fund flows have gradually stabilized. However, I believe that as liquidity $BTC remains thin and fragile, the role of ETFs is becoming increasingly critical.
At this stage, closely monitoring ETF cash flow data is one of the most important indicators for assessing risk and the potential for further sharp market volatility.
#BTC
