Bitcoin $BTC ( ▼ 0.67% ) continues to trade sideways, but Wall Street analysts think the worst of the recent crypto selloff may already be in the rearview mirror. Even after more than $1.1 billion flowed out of bitcoin ETFs over the past three days, JPMorgan says there are early signs that selling pressure is starting to fade.
The call comes as bitcoin remains stuck in a tight range and investors look for confirmation that the market has finished unwinding last year’s risk reduction.
ETF Bleeding Continues, but Slows
Bitcoin has hovered between roughly $89,000 and $91,000 over the past 24 hours, while spot bitcoin ETFs recorded $1.1 billion in outflows in just three days, according to SoSoValue data.
Despite that headline number, analysts at JPMorgan Chase say January flows are showing “signs of stabilization and of bottoming out,” suggesting the worst phase of ETF selling may already be done. They added that similar stabilization signals are appearing in perpetual futures markets as well.
JPMorgan: The De-Risking Phase Is Likely Over
Nikolaos Panigirtzoglou, JPMorgan’s managing director of global market strategy, said the data points to a broader conclusion. According to the firm, the crypto position reduction by both retail and institutional investors during the final quarter of 2025 is “likely behind us.”
JPMorgan also pushed back on the popular theory that deteriorating liquidity conditions caused the recent crypto correction. Instead, the bank argues the selloff was driven by de-risking triggered by concerns around a potential index exclusion for Strategy $MSTR ( ▼ 5.77% ) , which was later reversed.
Macro Noise Still Weighing on Sentiment
Not everyone is convinced the market is ready to move higher. Nic Puckrin, cofounder of Coin Bureau, said selling pressure has been fueled by macro uncertainty, including the latest nonfarm payrolls report and the Supreme Court’s decision related to tariffs.
He added that bitcoin’s failure to extend its early January rally reflects a lack of conviction, with $94,000 remaining the key level to watch for a meaningful upside breakout.
Analysts at Bitunix echoed that view, warning that crypto markets remain highly sensitive to policy uncertainty. They said the tariff ruling could influence inflation expectations, the U.S. dollar, and overall risk appetite, potentially amplifying volatility across major crypto assets.
Whales Aren’t Buying the Dip
On-chain data is adding another layer of caution. Analysts at CryptoQuant said whale buying has slowed materially, with large-holder balances declining at the fastest pace since early 2023.
Addresses holding between 1,000 and 10,000 bitcoin have seen their combined balances fall by roughly 220,000 BTC over the past year, marking the sharpest drawdown since the last crypto bear cycle. CryptoQuant also noted that long-term holder selling may be overstated, as a portion of reported activity reflects internal exchange transactions rather than true distribution.
A Market Catching Its Breath
Taken together, the data paints a market that may be stabilizing, but not yet convinced. JPMorgan sees the structural de-risking as largely complete, while other analysts remain focused on macro catalysts and fading whale support.
For now, bitcoin appears to be catching its breath. Whether that pause turns into a base for the next leg higher or a prelude to further weakness may hinge less on crypto itself and more on what happens next in Washington and the broader economy.