Crypto Fear Reaches Extreme Levels on Christmas as Bitcoin and Ethereum ETF Outflows Continue

Crypto market sentiment deteriorated sharply on Christmas Day as thin holiday liquidity and persistent ETF outflows pushed fear indicators to extreme levels. Bitcoin (BTC) briefly slipped below the $87,000 mark on December 25, weighed down by reduced trading activity and continued withdrawals from spot exchange-traded funds, according to data from XWIN Finance.

Thin Holiday Trading Amplifies Volatility

The holiday session saw noticeably lighter volumes, a condition that often exaggerates price movements. XWIN Finance’s Trend Index, published on December 25, classified the market as being in a “mild downtrend,” assigning it a score of 34 out of 100. The report pointed to sustained ETF outflows and selling pressure during U.S. trading hours as key factors behind the weakness.

Bitcoin dipped below $87,000 before staging a modest rebound, but upside momentum remained limited. Multiple attempts to break back into the $88,000–$89,000 range failed, an area XWIN described as a strong resistance zone influenced by options market positioning.

ETF Outflows Keep Pressure on Bitcoin and Ethereum

Spot Bitcoin ETFs continued to record net withdrawals, with an estimated 2,900 BTC—valued at roughly $251 million—leaving funds in the latest session. This trend aligns with broader data showing cumulative Bitcoin ETF inflows down by nearly $6 billion from their peak levels in October. Ethereum ETFs mirrored this weakness, remaining net negative on a weekly basis despite posting a small daily inflow.

The sustained outflows have reinforced cautious sentiment among investors, particularly as ETFs have become a key barometer of institutional demand in the current cycle.

Mixed Signals Across the Crypto Market

Despite weakness in Bitcoin and Ethereum products, capital flows elsewhere in the market paint a more nuanced picture. Solana-linked investment products continued to attract steady inflows, while XRP-focused ETFs added approximately $8 million in the most recent session, making XRP a notable outlier among crypto funds.

At the time of writing, Bitcoin was trading just below $88,000, up about 1% on both the day and the week, but still nearly 20% lower over the past three months. The market remains caught between easing on-chain sell pressure and fragile sentiment, leaving prices vulnerable to sharp moves in either direction.

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