The US investors are shedding light on crypto funds as world markets are drawing in new funds. The correlation between the price of bitcoin and that of gold is once more attracting the interest of portfolio managers who are in need of stability.
Bitcoin and Ethereum US spot exchange-traded funds are recording sustained outflows. There have only been two weeks of favourable inflows in the year 2026. The assets of total Bitcoin ETFs fell by about 115 to about 83 billion.
Ether funds dropped from approximately 11 billion to approximately 18 billion. The move underscores the decline in domestic demand for digital assets and the increase in riskiness.
Investors monitor Bitcoin and gold since ETF flows have deteriorated. [Trade Union]
Why Are Investors Moving Capital Overseas?
The rate of capital rotation is gaining pace towards international equities as the valuation appears cheaper in foreign countries. January made some of the best inflows to global ex-US funds in years.
These funds attracted approximately a third of the overall ETF inflows with a reduced asset base.
Institutions are seen to be lightning congested US growth trades such as crypto allocations. Financial conditions are also tightening because of the increasing yield on Treasury bonds.
The yields provided by bonds are now more attractive than the yields provided by speculative assets. Such a dynamic will push up high-beta holdings like Bitcoin and Ethereum.
International ETF Inflows Strengthen Global Markets
The international equity products are enjoying the macro conditions that are not in the United States. Brightening growth prospects and policy maintaining encourage diversification.
Data provided by ETF trend shows that the net inflows have been consistent over the last year. Such flows are the opposite of the crypto fund withdrawals. The digital assets experience weak purchasing pressure as liquidity moves to foreign countries.
This turns back the tide of rallies that propelled up to 2024. In the absence of consistent ETF demand, the price will become more responsive to risk sentiment and macro shocks.
World equity ETFs are on a roll as the money moves out of US crypto funds. [Britannica]
Is Bitcoin Digital Gold During Volatile Cycles?
The argument as to whether bitcoin digital gold or not has been revived with the uncertainty growing. During a state of stress and increasing yields, gold has customarily drawn flows.
Bitcoin occasionally imitates such behaviour, yet it is more volatile. The sentiment in the market of bitcoin is no longer conviction but reluctance.
Other traders still consider Bitcoin as a form of protection against currency debasement. It is a speculative technology asset to others. Such a discrepancy is the reason why there is a variability in the correlation between Bitcoin and gold prices.
Market Sentiment Weakens Short-Term Liquidity
Crypto ETFs had benefited from upward price moves in the past due to continuous inflows. The demand generated excellent liquidity support in upsurges.
The mechanism has now turned into a distribution. Money is selling and not position building. This is a process that exerts consistent pressure on markets, depth and order books.
Short-term rebounds thus find it difficult to sustain gains. Analysts indicate that the outflows in ETFs might persist until the macro conditions improve.
ETF redemptions put a strain on liquidity and crypto trading volume. [m.Stock]
What Does This Mean For Bitcoin Price Correlation With Gold?
The correlation between the price of Bitcoin and the price of gold could increase with the possibility of risk aversion increasing in the world market. Perceived safe havens tend to attract investors when yield is on the increase.
Nonetheless, Bitcoin continues to respond to liquidity in a rather conventional way. Further ETF withdrawals might limit future gains in the next few months. The temporary weakness in longer-term adoption trends does not overrule the trend.
It is thus possible that portfolio diversification of assets may overrule strategy choices. Flow, yield and sentiment will be monitored by traders to have a better idea of direction.
Also Read: Goldman Sachs Bitcoin Investment Reveals 45% Unrealised Loss
FAQs
Q1: Why are Bitcoin ETFs seeing outflows in 2026?
A1: Higher Treasury yields and stronger global equities are pulling capital away from crypto.
Q2: Is Bitcoin digital gold?
A2: Bitcoin sometimes behaves like gold but remains more volatile and liquidity-driven.
Q3: How does bitcoin market sentiment affect prices?
A3: Weaker sentiment reduces buying pressure and increases short-term price swings.
Q4: Could ETF flows impact future rallies?
A4: Yes. Sustained inflows support rallies while outflows suppress momentum.
