Glassnode Reveals Critical Data for Bitcoin (BTC) and Ethereum (ETH): Institutional Outflows Signal Market Shift

Source: CryptoNewsNet Original Title: Glassnode Reveals Critical Data for Bitcoin (BTC) and Ethereum (ETH): “It’s Turned Bearish!” Original Link: The decline in Bitcoin (BTC), Ethereum (ETH), and altcoin prices has also affected ETFs. As a result of these declines, outflows from ETFs have increased, and Glassnode has analyzed these outflows.

On-chain data platform Glassnode said that outflows from Bitcoin and Ethereum ETFs have been ongoing for weeks, indicating that institutional investors are exiting the market.

According to Glassnode, this negative trend in ETFs indicates that institutional investors are now in a phase of low participation and partial exit, reinforcing the ongoing liquidity tightening trend in the broader crypto market.

At this point, Glassnode emphasizes that the prolonged negative flows in BTC and ETH ETFs should be interpreted as weakening institutional participation and the market entering a lower-volume phase.

ETFs are considered the strongest indicator of institutional investor sentiment. A decrease in ETF inflows, or institutional capital inflows, can negatively impact market depth and trading volume, potentially leading to more volatile short-term price fluctuations.

Analysts, recalling that Bitcoin and Ethereum ETFs were the main driving force behind the 2025 rally, noted that in the current landscape, sentiment among institutional investors appears to have shifted from a bull market to a bear market.

While it remains unclear whether the sell-off in the corporate sector is temporary or signals the beginning of a bear market, analysts say it is ultimately temporary and the long-term bullish outlook remains unchanged.

According to Glassnode, despite the low liquidity, weak risk appetite, and bearish corporate trend seen in the short term, major players have not yet abandoned their long-term positions. At this point, analysts note that the long-term picture still looks strong.

Besides Glassnode, analysts also said that the outflows from BTC and ETH ETFs reflected year-end mechanisms rather than a shift in investor confidence, and that these movements stemmed from investors’ risk aversion before Christmas, decreased liquidity during the holiday season, portfolio rebalancing, and seasonal profit-taking.