US Spot Bitcoin ETFs Hit by Record Outflows as Investors Face 20% Losses

United States spot Bitcoin ETFs have entered their largest withdrawal cycle to date, shedding approximately 100,300 BTC since October. According to data from SoSoValue, an estimated $1.6 billion exited these funds in January 2026 alone. This massive liquidation cycle comes as Bitcoin trades near $67,349, significantly below the $83,980 average cost basis for many participants. Consequently, investors are currently facing unrealized losses of approximately 20%, fueling further redemption requests. The persistent outflows indicate a cooling of institutional demand and create sustained downward pressure on the cryptocurrency's price. Market analysts suggest that forced liquidations to meet these redemptions could continue to weigh on the broader digital asset market.