Cryptocurrency markets are lagging behind a surging stock market, with Bitcoin exchange-traded funds (ETFs) posting their longest stretch of daily outflows since launch, according to a report from market maker Wintermute. The outflows have deepened a divergence between crypto and equities, though Wintermute sees the pullback as a reset phase that historically precedes a new upward cycle.
ETF Outflows Hit Records
Spot Bitcoin ETFs in the U.S. recorded an 11th consecutive day of net outflows, pushing the total over that period to $3.45 billion. On Monday alone, the funds shed $483.8 million, with BlackRock’s IBIT losing $440.3 million, according to SoSoValue data. Morgan Stanley’s MSBT was the only product to attract fresh capital, adding $6.14 million. The streak extended May’s bearish trend, when Bitcoin ETFs suffered a record $2.43 billion in net outflows—their worst month since November 2025.
Macro Headwinds and Sentiment Shift
Wintermute attributes the crypto market’s underperformance to a lack of the strong corporate earnings that are driving equities higher. “The S&P 500 climbing for nine straight weeks has left crypto behind because the sector lacks analogous positive catalysts,” the firm noted. Rising inflation, higher Treasury yields, and geopolitical tensions between the U.S. and Iran have added pressure. Additionally, Strategy—formerly MicroStrategy—recently sold Bitcoin for the first time in years, damaging the narrative of corporate accumulation and amplifying bearish sentiment.
A Reset, Not a Rejection
Despite the grim short-term outlook, Wintermute’s analysis points to early signs of institutional accumulation. Long-term investors have been building positions via over-the-counter (OTC) desks using time-weighted average price (TWAP) strategies, suggesting that sophisticated capital views current levels as attractive entry points for an 18-month horizon. The firm describes the market as being in a “reset phase” that typically precedes the next major rally, though it cautions that predicting the exact bottom remains difficult.
Bitrue Research lead Andri Fauzan Adziima echoed the cautious tone, saying the pullback reflects institutional caution rather than a long-term rejection of Bitcoin. He expects the market to enter a consolidation phase, with Bitcoin ETFs acting as a barometer of macro sentiment until clearer signals emerge.
