Bitcoin Slips to $68,400 as Institutional ETF Outflows Signal Market Exhaustion

Bitcoin’s recent price action marks a significant departure from the bullish momentum seen earlier in the year, as the asset struggles to maintain support levels following a brief weekend rally. Trading near $68,400, the primary cryptocurrency is currently navigating its fourth consecutive week of losses, a streak that has not been seen with such intensity since the 2018 bear market. This downturn is not merely a technical correction but appears to be driven by a fundamental shift in institutional appetite, evidenced by the accelerating pace of capital withdrawals from US-listed spot Bitcoin exchange-traded funds (ETFs).

The institutional exodus is perhaps the most concerning metric for market bulls. Last week alone, approximately $360 million was withdrawn from US Bitcoin ETFs, marking the fourth straight week of net outflows. This reversal in sentiment among institutional players suggests a 'wait-and-see' approach as macro headwinds intensify. The initial euphoria surrounding ETF approvals has transitioned into a period of consolidation, where high-interest rates and a hawkish Federal Reserve continue to weigh on risk assets. The correlation between Bitcoin and the broader technology sector remains high, with volatility in software and semiconductor stocks often preceding dips in the crypto market.

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Trading near $68,400, the primary cryptocurrency is currently navigating its fourth consecutive week of losses, a streak that has not been seen with such intensity since the 2018 bear market.

Adding to the complexity is a growing sense of uncertainty surrounding the artificial intelligence (AI) sector. While AI was previously a tailwind for tech-adjacent assets, recent questions regarding the immediate profitability of AI investments have led to a broader 'de-risking' across the technology landscape. As investors trim exposure to high-growth tech, Bitcoin and Ethereum have frequently been caught in the crossfire. Ethereum, specifically, has struggled to hold the $2,000 psychological level, reflecting a broader lack of conviction in decentralized finance (DeFi) and smart contract platforms during this period of high volatility.

The corporate fallout from this market cooling is becoming increasingly visible. Coinbase, the leading US cryptocurrency exchange, recently reported a substantial $667 million loss for the fourth quarter, highlighting the impact of reduced trading volumes and depressed asset prices on industry infrastructure. Similarly, crypto-heavy stocks like MicroStrategy have faced renewed pressure as their balance sheets remain highly sensitive to Bitcoin’s price fluctuations. This systemic stress is prompting a re-evaluation of the 'crypto-as-a-safe-haven' narrative, as the asset class continues to trade more like a high-beta tech play than digital gold.

Looking ahead, the technical outlook remains challenged. If the current month closes in the red, Bitcoin will register five consecutive months of declines—the longest such streak in seven years. Analysts are closely watching the $61,000 support level, which was briefly tested during recent sell-offs. A sustained break below this point could signal a deeper move into bear market territory. For the market to regain its footing, a stabilization in ETF flows and a clearer macro-economic signal from the Federal Reserve will be required. Until then, the market appears characterized by 'weak' sentiment and a lack of clear catalysts to drive the next leg up.