JPMorgan: Late-2025 Crypto Sell-Off Losing Steam

JPMorgan analysts have observed a shift in Bitcoin's market pattern as investor risk reduction appears to be concluding. Recent data shows that the late-2025 crypto sell-off is losing momentum, with balanced inflows and outflows in Bitcoin exchange-traded funds (ETFs).

The first two trading days of 2026 brought $1.2 billion into Bitcoin ETFs, including a single-day surge of $697 million on January 2, the largest inflow since October. However, this was followed by sharp reversals, with outflows totaling $243 million on January 3 and another $476 million on January 8.

This 'two-way flow' indicates that both buyers and sellers remain active in the market, rather than a one-directional pressure. JPMorgan characterizes the late-2025 decline as 'de-risking,' rather than a structural breakdown, with investors reducing exposure across stocks and digital assets due to rising macro uncertainty.

The bank warns that 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.