Bitcoin ETF Investors Face 8–9% Paper Losses as Crypto Sentiment Cools

Investors in U.S. spot Bitcoin ETFs are sitting on average paper losses of 8% to 9%, with an estimated average cost basis of $84,100 per BTC versus a current price near $78,500 as of February 3, 2026. Bitcoin has fallen over 35% from its 2025 peak, briefly dipping below $77,000 amid low trading volumes. Analysts cite weakening inflows, shrinking liquidity, and fading macro tailwinds as key drags on price. Glassnode’s Sean Rose noted that capital deployed since mid-2024 is now largely underwater, while earlier positions remain profitable. Despite a surge in ETF inflows in early January 2026, recent weeks have seen sustained net outflows, signaling cooling demand from both retail and institutional investors. K33 analyst Vetle Lunde added that while panic selling is absent, the market remains stuck in a wait-and-see mode, lacking new catalysts to reignite momentum.