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The Bitcoin bear market caught some parts of the crypto crowd by surprise as several investors expected prices to get better during various phases of the correction. However, some parts of the market experienced this correction phase and used on-chain data to base their forecast.
One such group is the on-chain data analysts who based the emergence of the bear market on the decline in apparent demand. Using the identical model, a well known market researcher has developed a possible catalyst for Bitcoin’s price recovery.
Bitcoin ETFs enter 2026 with outflows of $1.8 billion
In a recent post on the social media platform X, the pseudonymous analyst Darkfost commented divided These spot Bitcoin ETFs (Exchange Traded Funds) could play a giant role within the crypto market turnaround. According to market data, demand for crypto via exchange-traded funds has been weak to this point in 2026.
This cautious investor stance and “liquidity decline” has had a big impact available on the market, with prices falling to latest lows every two weeks. Darkfost highlighted that early 2026 seemed to be more of a de-risking period on the spot Bitcoin ETF side, largely driven by significant capital inflows and powerful speculative momentum.
Darkfost wrote within the X post:
In a more uncertain macroeconomic and geopolitical environment, market participants seem like reassessing their risk.
Unsurprisingly, recent on-chain data supports increasing investor apathy towards the Bitcoin ETF market. According to data highlighted by Darkfost, 2026 will begin with net outflows of around $1.8 billion, which is in stark contrast to the strongly positive figures in 2024 and the beginning of 2025.
Source: @Darkfost_Coc on X
These periods were characterised by sustained capital inflows and a big increase in market liquidity. However, it’s value noting that 2025 ended on a more negative note as ETF inflows fell from $27 billion to around $20 billion by year-end.
So this trend shows that the present weakness in demand is more like a gradual decline than a sudden decline. In any case, this weakness in demand has left the Bitcoin market exposed and more vulnerable to selling pressure and short-term volatility.
Darkfost concluded that sustained inflows into Bitcoin ETFs could possibly be an “essential catalyst” in restoring stronger market structure and investor confidence. However, signs to this point should not encouraging, with US-based BTC exchange-traded funds suffering net outflows of around $360 million last week.
Bitcoin price at a look
As of this writing, the worth of BTC is around $70,600, up almost 2% within the last 24 hours.
BTC Price Crosses $70,000 on Daily Timeframe | Source: BTCUSDT chart on TradingView
Featured image from Shutterstock, chart from TradingView
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