Capital is the lifeblood of markets, and right now the spotlight is on Bitcoin as Spot BTC ETFs record five consecutive weeks of net outflows — the longest streak since early 2025 — signaling a meaningful shift in short-term investor sentiment. After months of steady inflows that fueled bullish momentum and strengthened the narrative of institutional adoption, this reversal suggests that investors are recalibrating risk, locking in profits, or rotating capital into other opportunities. Spot Bitcoin ETFs such as iShares Bitcoin Trust, Fidelity Wise Origin Bitcoin Fund, and Grayscale Bitcoin Trust were initially celebrated as gateways for traditional finance to access crypto exposure in a regulated structure, and their flow data has become a key barometer for institutional conviction. Sustained outflows don’t necessarily mean the long-term thesis is broken, but they do reflect caution amid macro uncertainty, shifting interest rate expectations, and evolving liquidity conditions. When ETFs experience net redemptions, it can create short-term selling pressure as underlying assets are adjusted, which may amplify volatility and test support levels. However, seasoned market participants understand that capital flows are cyclical; periods of outflows often follow strong rallies, serving as cooling phases rather than definitive trend reversals. The broader crypto ecosystem remains structurally stronger than in previous cycles, with deeper liquidity, more transparent products, and greater global participation. For strategic investors, this phase becomes less about panic and more about positioning — analyzing whether the outflows are driven by macro headwinds, tactical de-risking, or sentiment fatigue. Historically, extreme pessimism and prolonged outflow streaks have sometimes preceded stabilization or renewed accumulation once confidence returns. The key question now is whether this five-week streak marks the beginning of a prolonged distribution phase or simply a consolidation period before the next wave of demand. As always, capital flows tell a story, but they are only one chapter in the broader narrative of adoption, regulation, innovation, and market psychology shaping Bitcoin’s trajectory in 2026 and beyond.