The post-election relief rally in Bitcoin has decisively reversed. According to reporting by CoinTelegraph, spot Bitcoin ETFs recorded $430 million in net outflows Thursday, wiping out Wednesday’s modest $128 million in combined inflows and signaling renewed caution among institutional investors.
The pullback was swift and severe. Bitcoin fell back below $76,000 after briefly climbing above $80,000 the prior day, while the Nasdaq Composite plunged 5.5%—its worst single-day performance since April 2025. Ether ETFs shed an additional $100 million, bringing total cryptocurrency fund outflows to roughly $530 million.
Fidelity Leads the Withdrawal
Fidelity’s Wise Origin Bitcoin Fund (FBTC) bore the brunt of Thursday’s selling, reversing $200 million in outflows after pulling in $237 million just the day before. BlackRock’s iShares Bitcoin Trust (IBIT) extended its own losing streak to five consecutive sessions, with more than $1 billion withdrawn since October 30.
The timing is telling. IBIT’s sustained outflows suggest that despite Bitcoin’s recent price strength, large institutional holders are actively taking profits or redeploying capital. Year-to-date, spot Bitcoin ETFs are now sitting on approximately $510 million in cumulative outflows—a sharp reversal from the optimism that accompanied the midterm election results.
Market Mechanics Behind the Reversal
The stock market’s sharp decline appears to have triggered the shift. When equities sell off this dramatically, institutional portfolios often move to de-risk across multiple asset classes simultaneously. Bitcoin, despite its anti-correlation narrative, remains correlated to risk appetite in the short term when volatility spikes.
Crypto analyst Michaël van de Poppe predicted further downside Friday, suggesting Bitcoin could dip below $75,000 before stabilizing. His assessment hinged on the severity of the Nasdaq’s move, which he viewed as a potential bottom signal for risk assets broadly.
A Softer Comparison to 2008
Not all observers are sounding maximum alarm. Dean Lyulkin, CEO of Cardiff and founder of investment publication The Dean’s List, pushed back against comparisons to the 2008 financial crisis in remarks shared with Cointelegraph.
He pointed out crucial structural differences: household balance sheets are considerably stronger today, the banking system is more resilient, and the Federal Reserve had already raised rates substantially before the 2008 crisis hit. While acknowledging vulnerabilities in commercial real estate, private credit, and potentially excessive AI spending, Lyulkin argued the economic foundation remains more stable than it was 16 years ago.
That distinction matters for Bitcoin. A genuine financial crisis would likely trigger panic selling across all risky assets, including cryptocurrency. A mere tech correction, by contrast, might represent a buying opportunity for strategic investors—particularly if the broader economic picture stabilizes over the coming weeks.
For now, the momentum belongs to the sellers. Whether Thursday’s $430 million outflow represents a genuine shift in conviction or a temporary profit-taking event will become clearer once equities settle and Bitcoin tests support levels below $76,000.