The Bitcoin bear market caught some parts of the crypto crowd by surprise, as several investors expected prices<\/a> to recover at different stages of the correction. However, some sections of the market saw this corrective phase, using on-chain data as the basis of their prognosis.<\/span><\/p>\n One such group is the on-chain data analysts who called the emergence of the bear market based on the decline in apparent demand. Using this same model, a prominent market researcher has come forward with a potential catalyst for Bitcoin\u2019s price recovery.<\/span><\/p>\n In a recent post on the social media platform X, pseudonymous analyst Darkfost <\/span>shared<\/span><\/a> that spot Bitcoin ETFs (exchange-traded funds) may play a huge role in the crypto market turnaround. According to market data, demand for crypto via exchange-traded funds has been weak so far in 2026.<\/span><\/p>\n This cautious stance from investors and \u201ccontraction in liquidity\u201d has had a significant effect on the market, as prices keep tumbling to new lows every other week. Darkfost highlighted that early 2026 has looked more like a period of risk reduction on the spot Bitcoin ETF side, which has been largely driven by substantial capital inflows and strong speculative momentum.<\/span><\/p>\n Darkfost wrote in the X post:<\/span><\/p>\n Market participants appear to be reassessing their risk exposure in a more uncertain macroeconomic and geopolitical environment.\u00a0<\/span><\/p>\n<\/blockquote>\n Unsurprisingly, recent on-chain data support the increasing apathy of investors towards the Bitcoin ETF market. According to data highlighted by Darkfost, the year 2026 is starting with around $1.8 billion in net outflows, which is in stark contrast to the strongly positive levels witnessed in 2024 and at the start of 2025.<\/span><\/p>\n Sustained capital inflows<\/a> and a significant expansion in market liquidity characterized these periods. However, it is worth mentioning that 2025 ended on a more negative note, with ETF inflows declining from $27 billion to around $20 billion by year\u2019s end.<\/span><\/p>\n Hence, this trend shows that the current weakness in demand seems more like a gradual decline than a sudden drop. In any case, this demand weakness has left the Bitcoin market unprotected and more vulnerable to selling pressure and short-term volatility.<\/span><\/p>\n Darkfost concluded that a sustained run of Bitcoin ETF inflows could be a \u201ckey catalyst\u201d to restoring a stronger market structure and investor confidence. The signs, however, have not been encouraging so far, as the US-based BTC exchange-traded funds<\/a> bled roughly $360 million in net outflows over the past week.<\/span><\/p>\nBitcoin ETFs Kick Off 2026 With $1.8 Billion Outflows<\/b><\/h2>\n
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![\"Bitcoin\"](\"https:\/\/pbs.twimg.com\/media\/HBHmsZOakAgEXIQ?format=jpg&name=large\")
Source: @Darkfost_Coc on X<\/pre>\n
Bitcoin Price At A Glance<\/b><\/h2>\n
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