The situation is nearing the end. Based on ETF capital flows, futures market positions, and overall risk sentiment changes, the risk-off behavior that dominated the market at the end of last year has shown clear signs of slowing down. The market is gradually entering a consolidation and stabilization phase rather than embarking on a new downward trend.

Risk-off intensifies at year-end, ETF funds clearly withdraw
JPMorgan Chase pointed out that during Q4 2025, the cryptocurrency market experienced significant selling pressure. Bitcoin and Ethereum spot ETFs saw large outflows of funds in December, while at the same time, global equity ETFs attracted record-breaking capital inflows, forming a stark contrast.

This divergence in capital flows reflects investors reallocating assets before the end of the year, significantly reducing exposure to high-risk assets such as cryptocurrencies, and has become an important background factor driving market correction.