Bitcoin slides 52% from peak as ETF outflows and rotation hit Trump trade
Bitcoin is giving back the “Trump trade” rally. After reaching new highs following President Donald Trump’s 2024 reelection, BTC has now fallen more than 50% from its peak and is trading around the $60,000 area.
The article says Bitcoin previously surged on optimism for a more crypto-friendly US policy, but that momentum has weakened. BTC briefly traded below $60,000 for the first time since 2024, and is now roughly 52% below its all-time high (set around October 2025, above $120,000). The earlier run was supported by strong institutional demand, including growth in Bitcoin ETFs’ assets under management.
Several pressures are cited for the drawdown. In early 2026, institutional investors reportedly pulled funds from Bitcoin ETFs, with more than $1.5 billion in net outflows in January (Farside data). Macro uncertainty and geopolitical risk (including the Iran war) raised the odds of rate hikes rather than cuts, pressuring risk assets.
A further hit came from “capital rotation” out of crypto into AI, with the report pointing to over $4 billion in ETF outflows in less than a month. Strategy co-founder Michael Saylor also reportedly sold 32 BTC from the firm’s treasury for about $2.5 million, adding to concerns about institutional appetite.
On policy, Trump signed the GENIUS Act to provide regulatory clarity for stablecoins, but the broader “Clarity Act” is still not finalized.
Bearish
This is bearish for traders because the core driver is weakening demand for Bitcoin. The article ties the drawdown to sustained Bitcoin ETF net outflows (over $1.5B in January, and $4B+ in under a month) plus a broader “capital rotation” narrative into AI. Historically, when BTC ETF flows flip from inflows to persistent outflows, spot buying pressure often fades and downside volatility increases.
In the short term, BTC trading near/under the psychological $60,000 area raises the risk of further liquidation cascades and trend-following selling, especially if ETF outflows continue. The Saylor treasury sale can also amplify negative sentiment among institutional and quant-style participants.
In the long run, policy progress (GENIUS Act) is constructive, but the article suggests the broader regulatory framework (Clarity Act) is not yet finalized—so sentiment may improve only gradually. If macro expectations eventually shift back toward rate cuts and ETF flows stabilize, the selloff could slow; until then, the “Trump trade” assumption appears less reliable, keeping the market vulnerable.