Bitcoin (BTC) Under $70,000 as ETF Outflows and US Data Rattle Markets
Published: February 08, 2026, 05:00 GMT+00:00
Key Points
- US BTC-spot ETFs experienced $358.5 million in weekly outflows, indicating a decline in institutional demand.
- Extreme Fear readings suggest potential downside exhaustion, supporting a cautiously optimistic medium-term outlook for BTC.
- Despite short-term pressures, expectations of Fed rate cuts and advancements in crypto legislation bolster a bullish long-term perspective.
Market Overview
Bitcoin (BTC) fell to $60,000, marking its lowest point since October 2024, before finding some support. The recent outflows from the US BTC-spot ETF market have shifted the supply-demand balance towards bearish sentiment. Concerns over a potential US recession, exacerbated by disappointing labor market data and AI-related spending announcements, have further dampened market sentiment.
ETF Outflows and Market Sentiment
The US BTC-spot ETF market has seen a continuous outflow trend, with a total of $1.96 billion in net outflows year-to-date. Key contributors to this trend include:
- iShares Bitcoin Trust (IBIT): $115.1 million in outflows
- Fidelity Wise Origin Bitcoin Fund (FBTC): $191.3 million in outflows
- Grayscale Bitcoin Trust (GBTC): $173.8 million in outflows
This ongoing outflow has contributed to an 11.9% decline in BTC year-to-date, reinforcing a bearish short-term outlook.
US Labor Market Data Impact
Recent labor market data has shown a significant decline, with jobless claims rising and job openings decreasing. This has raised concerns about the overall economic health, overshadowing the increasing expectations of a Fed rate cut in the first half of 2026.
Market Reactions and Analyst Insights
Market analysts have noted that despite the current downturn, historical trends suggest that both Bitcoin and stocks tend to recover from significant declines. The sentiment among traders has shifted towards panic selling, which could indicate a potential bottom for BTC prices.
Upcoming Economic Indicators
Key economic indicators, including retail sales and the jobs report, are expected to influence market sentiment in the coming week. A positive retail sales figure could alleviate recession fears, while a steady unemployment rate may bolster expectations for a Fed rate cut.
Technical Analysis
BTC is currently trading below its 50-day and 200-day Exponential Moving Averages (EMAs), indicating bearish momentum. However, oversold conditions may lead to a price rebound. A breakout above $75,000 could signal a trend reversal, while a drop below $60,000 would expose further downside risks.
Conclusion
The short-term outlook for Bitcoin remains bearish, influenced by ETF outflows and negative economic data. However, the medium- to long-term outlook is cautiously optimistic, supported by potential Fed rate cuts and favorable legislative developments. Monitoring macroeconomic indicators and ETF flows will be crucial for assessing BTC's future trajectory.