Despite a slowdown in inflows and a 25% drop in Bitcoin’s price, Bitcoin exchange-traded funds (ETFs) have maintained over 95% of their capital, according to Bloomberg analyst James Seyffart.

Seyffart noted that total ETF assets under management stand at $115 billion, even though inflows have declined from $40 billion to $35 billion. He compared this resilience to traditional U.S. stock ETFs, where investors typically hold onto assets during downturns rather than panic selling.

Recent data from SoSoValue indicates that U.S. spot Bitcoin ETFs experienced $870 million in outflows last week and $1.6 billion over the past month. Analysts attribute this to a “buy the rumor, sell the news” phenomenon, triggered by speculation around the Strategic Bitcoin Reserve initiative first mentioned by Donald Trump in July 2024.

Additional market indicators suggest growing weakness. CryptoQuant’s Darkfost highlighted a decline in Bitcoin demand since December, with fewer active buyers. The 30-day simple moving average of apparent demand has dropped, suggesting investor caution.

Further concerns arise from Alphractal’s analysis showing a weakening Bitcoin Sharpe Ratio since March 2024, despite Bitcoin hitting all-time highs above $100,000. This decline indicates rising risk per unit of return, driven by macroeconomic uncertainty and increased volatility.

Moreover, Santiment data reveals that large Bitcoin holders are offloading assets. In the past week, wallets holding between 100-1,000 BTC sold over 50,000 BTC, valued at approximately $4.07 billion. Historically, such movements by whale investors have influenced market trends, raising concerns about Bitcoin’s short-term outlook.