Bitcoin and Ethereum drop on the first day of the new year, ETF funds flow out significantly, market sentiment plunges into panic

Source: TokenPost Original Title: Bitcoin and Ethereum Weakness Lead to Continued ETF Fund Outflows… First Trading in 2026 Starts Unsettled Original Link:

Cryptocurrency Market’s First Day of the New Year Opens Poorly as ETF Funds Continue to Flow Out

On the first trading day of 2026, major crypto assets such as Bitcoin and Ethereum showed a downward trend, with large-scale fund outflows from cryptocurrency ETFs. The market sentiment index is in the panic zone, and investment enthusiasm remains subdued.

Market Overview

The cryptocurrency market started 2026 with a weak opening. The overall market cap decreased by 0.8% over 24 hours, approximately $3.06 trillion, but still remains above $3 trillion. Trading volume was about $87.6 billion, maintaining relative activity.

Major Coin Trends

Most mainstream coins experienced slight declines. Bitcoin(BTC) fell 1.2% to $87,735, Ethereum(ETH) decreased only 0.1% to $2,981, showing relative resilience.

Among other major coins, Solana(SOL) declined 1% to $124.87, BNB dropped 0.9% to $859.65, Dogecoin(DOGE) fell the most by 2.1%, XRP declined 1% to $1.85.

Only TRON(TRX) rose against the trend by 0.7% to $0.2849, becoming the only large-cap asset to increase. Among small and mid-cap coins, some projects gained over 20%, but others declined more than 8%.

ETF Fund Outflows Worsen Investor Sentiment

Investor sentiment remains subdued. The cryptocurrency fear and greed index recorded a value of 31, in the “fear” zone. Amid ongoing uncertainty, ETF fund flows show negative signals.

The US Bitcoin spot ETF recorded a net outflow of $348.1 million on December 31. Among them, a leading asset management firm IBIT had outflows of $99.05 million, a compliant platform FBTC outflows of $46.58 million, and a Grayscale fund GBTC outflows of $69.09 million. Other operators also recorded net outflows of $76.53 million.

Ethereum spot ETFs also experienced net outflows of $72.1 million, with multiple fund management companies seeing capital outflows.

Technical Outlook

Bitcoin is currently trading near $87,789. After a sharp decline from the October high of $126,000, it has been oscillating between $85,000 and $88,000. If the $85,000 support level breaks, the next support will be at $80,000–$81,000. If upward momentum strengthens, it could challenge $92,000, with targets at $98,000 and $100,000.

Ethereum is seeking support above $2,900. If it breaks through short-term resistance at $3,100–$3,200, it may rise to $3,400–$3,600. Conversely, if it falls below $2,800, it could test $2,600.

2026 Outlook: Loose Liquidity Provides Support

The Federal Reserve’s expected loose liquidity policy in 2026 is anticipated to have a positive impact on risk assets like Bitcoin. Industry analysts believe that the Fed’s Treasury bond purchase plans and rate cut expectations constitute a “mild quantitative easing,” which is favorable for the crypto ecosystem.

However, the market remains cautious about the timing of monetary policy implementation. According to data from a futures exchange, market expectations for a rapid rate cut in early 2026 remain conservative.

Overall, the market expects cryptocurrencies to show a “gradual rise under low volatility” rather than rapid surges. Industry analysts believe recent adjustments reflect a balance among fundamentals, macro environment, and institutional capital flows.

Legal Developments

The U.S. Federal Court in Florida dismissed a class-action lawsuit by cryptocurrency investors against a well-known individual. The plaintiffs claimed the defendant promoted a failed trading platform, causing investor losses, but the court dismissed the case due to lack of jurisdiction. This ruling may weaken the influence of future similar lawsuits against celebrities and sports teams.