Bitcoin slid hard over the weekend and stayed low into Monday, leaving traders on edge and pushing many to reduce risk.

Prices slipped from roughly $84,000 to about $74,600 in a matter of days, a drop that erased a chunk of recent gains and forced quick reassessments across markets.

Nervousness around Federal Reserve leadership, rising job worries, and fresh geopolitical flashpoints all piled up at once.

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Average ETF Price Above Market

According to Coinglass, the combined assets of US spot Bitcoin ETFs sit near $113 billion, while reports note they hold around 1.28 million BTC.

Based on those figures, the typical ETF buying price works out to an average of roughly $87,830 per coin — well above current trading levels.

That gap means many ETF positions are showing losses on paper right now. Some funds kept buying earlier and are holding positions that are underwater.

BTC is trading below the U.S. ETFs avg cost basis after the 2nd & 3rd biggest outflow weeks ever (last week and week before)

(and last week’s outflow will increase after IBIT reports friday’s numbers tomorrow)

this means the average bitcoin ETF purchase is underwater pic.twitter.com/XowzrnBaSM

— Alex Thorn (@intangiblecoins) February 2, 2026

Outflows Pick Up

Over the last two weeks, investors pulled close to $3 billion from the 11 spot ETFs, with one week seeing $1.50 billion leave and the prior week $1.30 billion, according to CoinGlass.

Those moves suggest some market participants are locking in gains or cutting exposure after the recent run-up.

At the same time, cumulative ETF inflows remain materially lower than earlier peaks; buying has not fully come back even as some holders remain steady.

Technical Signals And Bear Fears

Reports note that spot BTC is down roughly 40% from its October peak while ETF AUM has fallen by about 31%. That divergence has analysts warning that sustained weak demand could push Bitcoin into a deeper downtrend.

Technical charts show longer-term sell pressure building in certain measures. If demand fails to reappear, momentum could carry prices lower and extend selling across crypto markets.

Policy, Politics, And Market Mood

Market watchers point to extra uncertainty around monetary policy and geopolitics as fuel for the recent moves. Reports have disclosed that the proposed US Clarity Act stalled in Washington.

At the same time, headlines about tensions in the Middle East and trade friction added to a rush for traditional safe havens like gold and the dollar.

Even a hint of policy change matters: US President Donald Trump’s choice for the next Fed chair was discussed by investors as another factor shaping expectations.

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Liquidity And The Road Ahead

Institutional holders have not all capitulated. Many have been described as holding on, which can cushion sharp drops.

But when the average cost basis for major ETF holders is above the current market price, confidence can be fragile.

Liquidity has thinned in certain windows, and that makes price swings larger. A recovery requires renewed buying from both retail and big investors, otherwise sellers may dictate direction for longer.

Featured image from Unsplash, chart from TradingView

Mt Gox, the infamous Bitcoin exchange that collapsed in 2014, has made substantial Bitcoin (BTC) transfers as part of its repayment plan to creditors. The defunct exchange moved over $2.8 billion worth of Bitcoin today. Hence, the creditor repayment in BTC could be witnessed today, according to previous payouts.

Mt Gox Latest Bitcoin Transaction Details

According to Arkham Intelligence, on Tuesday, July 23, Mt Gox moved 42,587 BTC, valued at approximately $2.85 billion, to an internal wallet. Additionally, another 5,110 BTC was added via a different internal wallet, signaling the exchange’s preparation for BTC repayments. Hence, the collapsed exchange currently holds 90,344 BTC worth a whopping $6 billion.

The previous day, Monday, July 22, marked the beginning of this repayment process. Moreover, this news coincides with the imminent launch of Spot Ethereum ETFs. This created a buzz and speculation about the potential market impact on both Bitcoin and Ethereum price actions.

According to data sourced from Arkham Intelligence , Mt Gox has been making a series of smaller Bitcoin transfers on Monday. The most recent of these transactions involved 0.021 BTC, valued at approximately $1,390, sent to an address 1C9Vo…t81Fa. This transfer occurred just minutes before the report was issued, mirroring a similar transaction made six days prior.

The repetitive nature of these transactions, both involving 0.021 BTC from a Mt Gox-associated address, suggests that these could be part of a testing phase for their transfer capabilities. The duplicate nature of these transactions was confirmed by Arkham. Thus, today, the speculations can be held true that these small-scale transfers were a precursor to larger movements.

Earlier, on July 16, Mt Gox announced that it initiated for Bitcoin and Bitcoin Cash repayments to 13,000 out of approximately 20,000 creditors. This announcement was accompanied by a massive $6 billion move in Bitcoin. Moreover, the latest shift on July 23 mirrors a similar approach.

Also Read: Breaking: Mt Gox Moves $2.8B In Bitcoin, Crypto Falls Ahead ETH ETF

Crypto Market Takes A Hit

The timing of these substantial Bitcoin movements has sparked intense speculation about their potential impact on the crypto market. The latest shift on July 23 coincides with the launch of the Spot Ethereum ETF, which has already created ripples in the market.

The crypto market witnessed a bearish session as the Ethereum ETF launch emerges as a “sell the news” event. Additionally, Ethereum whales are looking to book profits from the ETF hype. This sentiment has analysts warning against a dip below $3,000 for Ethereum.

However, despite the bearish trend, the inflows from the ETF and the gradual adoption of these products are expected to drive Ethereum prices beyond $4,000. In addition, Bitwise CIO Matt Hougan had previously set a $5,000 target for ETH following the ETF launch.

Nonetheless, at press time, both BTC and ETH witnessed a plunge. The BTC price lost hold on the $67,000 level and traded at $$66,676.33, down 1.34%. Whilst, Ether price dropped 1.55% to $3,450. However, the decline in Bitcoin could be momentarily as on July 16, when Mt Gox made a huge repayment, the BTC price remained resilient at $65,000.

Also Read: US Govt Dumps $4M In Bitcoin Again, Another BTC Selloff Ahead?

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Kritika boasts over 2 years of experience in the financial news sector. Currently working as a crypto journalist at Coingape, she has consistently shown a knack for blockchain technology and cryptocurrencies. Kritika combines insightful analysis with a deep understanding of market trends. With a keen interest in technical analysis, she brings a nuanced perspective to her reporting, exploring the intersection of finance, technology, and emerging trends in the crypto space.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.