Bitcoin loses momentum on Wall Street, but JPMorgan says the sell-off may be bottoming out.

Bitcoin ETFs in the United States saw strong capital outflows this week, but JPMorgan observes signs of stabilization in the market, following the long correction phase.

Bitcoin funds listed on the US stock market have almost completely wiped out the inflows recorded in the first few trading sessions of 2026. According to data from the SoSoValue platform, more than $1.120 billion was withdrawn in just three days, reflecting an abrupt shift in investor sentiment. 

Last Thursday saw a daily outflow of $398,95 million, adding to Wednesday's $486 million and Tuesday's $243 million. This behavior contrasts sharply with the initial enthusiasm, when Bitcoin ETFs had accumulated over $1.000 billion in inflows during their first two trading days of 2026. 

This pullback has coincided with the fall in the price of BTC, which, after reaching an all-time high of $126.000 in October 2025, has stabilized around $90.000. However, in this context, JPMorgan analysts believe that selling pressure may be losing steam and that the market is approaching a point of stabilization.

Large funds are rebalancing their positions in response to the crypto market correction.

Data from SoSoValue shows that major Bitcoin funds have been at the forefront of recent outflows. BlackRock's IBIT fund saw withdrawals of $193,34 million, while Fidelity's fund reported $120,5 million in negative flows. 

Other publicly traded investment vehicles, such as those from Ark & 21Shares and Grayscale, also contributed to the trend, albeit with smaller amounts. However, the impact of these outflows is reflected in the price of Bitcoin, which started 2026 strongly, surpassing $94.000 per unit during the first week, but retreated to around $89.000 in recent days, stabilizing around $90.900 at the time of writing, according to data from CoinGecko. 

The nearly 30% correction in Bitcoin's price, from its October peak, has generated caution among institutional investors, who have opted to rebalance portfolios and take profits after the initial rally.

The current investor behavior isn't limited to Bitcoin-based funds. In fact, Ethereum spot ETFs saw outflows of $159 million in the last trading session, bringing their total losses to $858 million over two days. XRP-linked funds also saw their upward trend halted with a $40 million outflow on Wednesday, although they subsequently recovered some inflows. 

All these movements reflect the volatility of the crypto market and the sensitivity of capital flows in regulated products such as ETFs, which amplify price trends and condition investor perception.

JPMorgan sees signs of stabilization in the crypto market

Despite the magnitude of the outflows in cryptocurrency spot ETFs, JPMorgan analysts led by Nikolaos Panigirtzoglio They believe that the massive sell-off of crypto assets may be bottoming out. 

The bank notes that January data shows a decrease in selling pressure, with flows into Bitcoin and Ethereum funds beginning to stabilize. Furthermore, movements in perpetual futures contracts and positions detected in CME derivatives also reinforce this view, as they reflect that a large portion of investors, both retail and institutional, have already executed most of the reductions that marked the end of 2025.

Another factor contributing to calming the current situation is MSCI's decision to maintain the inclusion of Bitcoin-related companies and cryptocurrency-linked bond issuers in its main global equity indices. While the organization has announced a more in-depth methodological review for the future, this decision mitigates the risk of forced selling resulting from potential index changes and offers temporary relief to institutional exposure to the sector.

JPMorgan, for its part, believes that the recent price decline was not due to worsening liquidity. Its market breadth metrics, which assess the relationship between trading volumes in Bitcoin futures on the CME and the leading Bitcoin ETFs, show no signs of deteriorating operating conditions. From the bank's perspective, the current pullback is explained more by a risk-reduction process initiated after MSCI's October announcement regarding potential delistings than by a structural market collapse. 

Based on current evidence, their analysts conclude that most of the crypto market adjustment has already materialized and that the most recent data points to a consolidation phase rather than a new wave of selling.