Bitcoin Market Undergoes Structural Shift as ETF Outflows Stabilize

After hitting a peak of $126,100 in October 2025, Bitcoin has entered a significant correction phase, with prices dropping to approximately $60,000 by early February. Insights from XWIN Research Japan indicate that this recent bearish trend signifies a structural reassessment for the leading cryptocurrency. Although the overall market sentiment leans pessimistic, certain indicators suggest a waning of selling pressure.

Key Takeaways

Bitcoin reached an all-time high of $126,100 in October 2025 but corrected to around $60,000 by early February.
XWIN Research Japan highlights that the current bearish market may be undergoing a structural reassessment.
Recent ETF inflows have steadied, indicating a potential end to outflows as institutional investors rebalance their portfolios.
As of now, Bitcoin is priced at $67,372, reflecting a 4.34% increase over the past month.

Bitcoin

Analyzing Bitcoin's Correction: Weak Demand and ETF Insights

In a recent QuickTake publication on CryptoQuant, XWIN Research Japan utilizes data from Bitcoin Exchange Reserves and ETF inflows to evaluate current market dynamics. According to the charts provided by CryptoQuant founder Ki Young Ju, Bitcoin exchange reserves have consistently decreased since 2024. This trend shows that investors prefer to keep their assets in private storage rather than selling them.

This reduction in market supply has coincided with a period where demand remained stable or even increased. The price of Bitcoin witnessed a remarkable gain of over 200% in this timeframe. A significant contributor to this price surge has been the Bitcoin Spot ETFs, which have accumulated net inflows totaling $55.37 billion, with net assets reaching $87.07 billion within their first two years. However, following its most recent peak, Bitcoin Spot ETFs began to see a drop in holdings.

Bitcoin
Source: CryptoQuant

Recent data from SoSoValue points out that Bitcoin ETFs experienced over $6.38 billion in net outflows between November and February, greatly affecting institutional demand and contributing to Bitcoin's price correction. XWIN Research Japan notes that this reinforces the Bitcoin Spot ETF as a fundamental component of the current market cycle.

Fortunately, recent trends show that ETF outflows have begun to stabilize, with significant net outflows now on hold as many institutional investors complete their portfolio adjustments. In fact, the last two weeks of trading saw a total of $1.36 billion in net inflows. Nonetheless, XWIN Research Japan emphasizes that until ETF holdings experience a sustained increase, the market remains in a supply-demand rebalancing phase.

Current Bitcoin Price Insights

As of the latest update, Bitcoin is trading at $67,372, reflecting a modest increase of 4.34% in the past month.

Bitcoin
BTC trading at $67,192 on the daily chart | Source: BTCUSDT chart on Tradingview.com