Bitcoin’s January sell-off marked a decisive shift from buy-the-dip to sell-the-rip behaviour, as retail investors chased ETF inflows while professional desks quietly reduced risk, according to a monthly report from Finestel.
Finestel said a “fake rally” driven by roughly $1.42 billion in US spot bitcoin ETF inflows on so-called “Trump QE” hopes pushed BTC toward $98,000 before macro shocks reversed sentiment.
“We are no longer in a ‘buy the dip’ environment; until proven otherwise, we have entered a ‘sell the rip’ structure,”
The report said, after bitcoin lost its $84,000 floor and closed January near $77,195.
The breakdown trapped an estimated 1.2 million BTC at a loss, while ether fell 26% in January, broke $2,900 support and saw daily realised losses exceed $400 million.
Finestel data showed professional managers sharply increased stablecoin allocations from about 5% to more than 28% as volatility rose and liquidations peaked late in the month.
Despite the price damage, the firm noted improving policy signals, including US discussions around a Bitcoin strategic reserve and regulatory easing in Japan and South Korea.