Well, that was short-lived. Bitcoin (BTC) ETFs went from celebration mode to redemption mode on Tuesday, posting $243 million in net outflows as the cryptocurrency dipped below $94,000. The selloff put an abrupt end to what had been a promising two-day rally to kick off 2026.

The Exit Was Led By Familiar Names

U.S. spot Bitcoin ETFs flipped from inflows to outflows Tuesday, snapping a two-day streak that had pulled in $1.16 billion, according to SoSoValue data.

Fidelity Investments' FBTC (FBTC) led the exodus with $312.24 million in outflows. Grayscale wasn't far behind, with its GBTC (GBTC) recording $83.07 million in redemptions while its Mini Trust saw another $32.73 million head for the exits.

Ark & 21Shares' ARKB (ARKB) and VanEck's HODL (HODL) also posted negative flows, adding to the Tuesday sell-off.

BlackRock Stands Alone

In a market where everyone else was heading for the door, BlackRock's iShares Bitcoin Trust (IBIT) was the lone buyer. The fund pulled in $228.66 million against the tide Tuesday, bringing its total net inflows to $888 million across the first three trading days of 2026.

That kind of divergence tells you something about conviction levels. While other funds saw redemptions, BlackRock's institutional clients kept buying.

"BTC ETF outflows look more like post-inflow normalization than risk-off," said Vincent Liu, CIO of Kronos Research. "Institutions are rebalancing exposure, not exiting conviction," he added.

Nick Ruck, director at LVRG Research, echoed that interpretation, calling the outflows "normal profit-taking and portfolio rebalancing."

The Trump DeFi Project Shifts To Ethereum

Adding an interesting wrinkle to the story, World Liberty Financial rotated out of Bitcoin and into Ethereum (ETH). The Trump family's DeFi project sold roughly $2.5 million in wrapped Bitcoin (WBTC) on Jan. 7 and used the proceeds to buy about 770 ETH.

This reads less like a risk-off move and more like a bet on Ethereum's relative strength. But it certainly didn't help Bitcoin sentiment.

Meanwhile, spot Ethereum ETFs posted $114.7 million in inflows Tuesday despite outflows from Grayscale and Fidelity. XRP (XRP) and Solana (SOL) ETFs grabbed $19 million and $9 million, respectively.

"It makes sense that traders are rotating toward SOL and XRP, both of which could have more upside than BTC given their previous all-time high prices," said Jeff Mei, COO at BTSE.

The Technical Picture Suggests A Bull Trap

From a charting perspective, things don't look particularly encouraging for Bitcoin bulls. After climbing 14% from its base, BTC failed to hold the $94,000-$95,000 support zone and is now testing the 0.382 Fibonacci level at $90,868.

The Supertrend indicator flipped to resistance at $95,121, which represents a bearish development after months of acting as support. The failed rally to $95,000 in early January is starting to look like a classic bull trap.

If you're looking up: Bitcoin needs to reclaim $94,007 (the 0.5 Fibonacci level) to stabilize. Beyond that, watch $97,227 (0.618 Fib), then $101,700. Clearing $107,119 would negate the bearish outlook entirely.

If you're looking down: Support sits at $90,868 (0.382 Fib), then $86,934 and the SAR indicator at $86,093. Breaking below $86,000 targets the wedge breakdown objective at $80,576.

The next few sessions will tell us whether Tuesday's outflows were just a temporary pause in a longer rally, or the beginning of something more concerning. For now, Bitcoin is caught between institutional rebalancing and a technical setup that's starting to crack.