Bitcoin stabilization and balanced exchange-traded fund flows signal that investor risk reduction may be concluding, according to JPMorgan analysts who tracked recent market patterns showing neither panic nor recovery but a shift toward two-sided trading activity.
What Happened: ETF Flows
JPMorgan research indicates the late-2025 crypto sell-off is losing momentum as Bitcoin ETF activity shows balanced inflows and outflows rather than one-directional pressure.
Bitcoin traded around $90,944 on Jan. 9, up 2.6% over the previous week, while Ethereum hovered near $3,100, up over 3% during the same period.
The first two trading days of 2026 brought $1.2 billion into Bitcoin ETFs, including a $697 million single-day surge on Jan. 2—the largest inflow since October.
That reversed sharply. Outflows totaled $243 million on Jan. 3, followed by another $476 million on Jan. 8, creating what market observers call two-way flow where buyers and sellers both remain active.
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Why It Matters: Risk Appetite
JPMorgan characterized the late-2025 decline as "de-risking" rather than structural breakdown, with investors reducing exposure across stocks and digital assets as macro uncertainty rose.
This distinction matters because fear-driven sell-offs typically end differently than selloffs caused by fundamental problems—prices often stabilize before rebounding when investor sentiment shifts.
Bitcoin remains well below recent highs, and renewed ETF outflows could trigger further declines.
The bank noted crypto markets remain sensitive to economic shocks, including interest rate movements or weak employment data. Investors should approach current conditions with caution, limiting position sizes and maintaining long time horizons rather than making large short-term bets.
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