January 10 Cryptocurrency Market Watch: A Day of Simultaneous Capital Outflows and Institutional Variable Effects

Today, the crypto market continued its correction after a high-level consolidation, with Bitcoin falling back to around $90,000 after failing to hold its previous highs. On the surface, this appears to be a price adjustment, but from on-chain data, ETF fund flows, and regulatory changes, it reflects the simultaneous influence of multiple real forces.

First, there is a clear change in on-chain large-cap holdings. CryptoQuant, an on-chain analysis firm, disclosed that whale addresses holding between 1,000 and 10,000 BTC have collectively reduced their holdings by approximately 220,000 BTC recently, marking the fastest decline since early 2023.

This data indicates that some large funds that had been holding steadily during the upward cycle are actively reducing their risk exposure, rather than simply engaging in short-term trading.

Complementing the on-chain data is the flow of ETF funds. Bitcoin spot ETFs in the US have recently experienced continuous net outflows, with total outflows exceeding $100 million.

Represented by products from BlackRock and Fidelity, institutional funds have not been increasing their positions significantly at current price levels, showing that traditional capital is adopting a wait-and-see approach or even phased withdrawals rather than chasing higher prices.

Policy and regulatory changes also serve as an important background to the market sentiment on this day. The resignation of SEC Commissioner Caroline Crenshaw has taken effect, leading to a noticeable change in the SEC’s structure.

The market generally interprets this as a possible future shift towards more relaxed enforcement and strengthened rule-making by 2026. This expectation had previously provided short-term support to Bitcoin and XRP prices.

However, based on January 10’s performance, regulatory expectations have not immediately translated into new capital inflows.

Meanwhile, the institutional side is not entirely cooling off. Asset management firm Grayscale officially registered trust structures related to BNB and Hyperliquid this week, paving the way for potential ETF products in the future.

Although this move has not yet resulted in direct capital inflows, it sends a clear signal: amid increased price volatility, institutions are still actively expanding their coverage of compliant crypto assets.

Overall, January 10 was not a day of emotional panic but a day of re-pricing driven by capital and institutional variables. On one side, whales are reducing holdings and ETF flows are outflowing; on the other, regulatory restructuring and new product preparations are progressing simultaneously.

The price decline more reflects risk rebalancing rather than a fundamental market reversal. In the short term, whether capital will re-enter depends on price stability and whether institutional signals truly materialize.
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