Crypto Fear Strikes Over Christmas as Bitcoin and Ethereum ETF Outflows Continue

Bitcoin fell below $87,000 over Christmas amid tight liquidity and ETF outflows, even as on-chain data suggests selling pressure is easing.

Bitcoin (BTC) fell below $87,000 during lean Christmas Day trading on Dec. 25 as ETF outflows and weak holiday liquidity kept pressure on the market, data shared by XWIN Finance showed.

The pullback comes even as on-chain metrics point to easing selling pressure and record build-up of stablecoin capital, leaving traders divided between caution and the risk of sudden price swings.

ETF outflows and holiday liquidity are weighing on prices

XWIN Finance’s Trend Index, published on December 25 placed the market is firmly in a “mild downtrend” with a score of 34 out of 100, with continued ETF withdrawals and US session selling cited as the main drags.

Bitcoin briefly fell below $87,000 before rising again, although repeated attempts to reclaim the $88,000 to $89,000 area have stalled, a zone XWIN describes as heavy resistance formed by options positioning.

Meanwhile, spot Bitcoin ETFs continued to see net withdrawals, with around 2,900 BTC, worth around $251 million, leaving money in the last session. This weakness is consistent with figures reported by CryptoPotato on December 24, which showed that cumulative inflows into BTC ETFs fell by almost $6 billion since their peak in October. Ethereum funds followed a similar pattern, remaining net negative on a weekly basis despite a small daily rebound.

In contrast, diversification flows are visible elsewhere. Solana products, for example, posted steady inflows, while XRP-related ETFs added about $8 million in the most recent session, extending a streak that has made XRP funds an outlier among crypto ETFs.

Bitcoin’s price action reflects this uneasy balance, with the asset trading just under $88,000 at the time of writing, up about 1% on the day and week, but still down almost 20% over three months.

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Volatility has remained compressed, with a 24-hour range between $87,000 and $88,000, while swings have occurred over the past week between $85,000 and just over $90,000. Compared to the broader market, Bitcoin’s moves are muted, with liquidity-driven wages outweighing trend-following flows.

Signals in the chain indicate exhaustion, not panic

Underneath the weak sentiment, data about the chain paints a more nuanced picture. XWIN noted that whale exchange inflows are near cycle lows over the past 30 days, while Coin Days Destroyed (CDD) is still declining, a sign that long-term holders are slowing their selling.

At the same time, there appears to be some caution, with very old Bitcoin cohorts spending higher, a pattern sometimes observed at major turning points. Network activity also remains weak, indicating that demand has not yet regained strength.

According to the Nevertheless, stablecoin supply has risen to a record nearly $310 billion, pointing to large pools of sidelined capital.

With stocks and gold both at record highs and January interest rate expectations trending toward a pause, macro conditions are not overtly hostile. For crypto, however, XWIN suggested that the next step still depends on ETF flows and post-expiration options dynamics. Until those shifts, the market may remain vulnerable, even as signs of seller fatigue quietly accumulate beneath the surface.