Bitcoin ETFs Shed $357.6M Monday Amid BTC Hashrate Scare

Key Insights:

• Fidelity (FBTC) led Monday’s BTC spot ETF outflows with its 239.12M sell-off. Monday’s net flows turned negative in December, with net outflows at $158.85M.
• Bitcoin (BTC) fell over 5% between London closing and New York opening hours. It traded at $86,010 at press time, reflecting a 4.1% drop intraday.
• BTC fell after Nano Labs CEO Jack Kong stated that China had shut down approximately 400,000 mining machines. The confirmation on Monday triggered the market reaction.

Bitcoin mining hash rate, the computing-power metric reflecting the network’s ability to mine BTC, fell sharply on Monday. BTC spot price reacted sharply to the development, dropping as low as $85,140 after opening at $86,412.

BTC spot Exchange Traded Funds (ETFs) also reacted sharply, posting net daily outflows of $357.6 million. Longs accounted for 86% of the total BTC liquidations yesterday.

Fidelity Sells $230.12M Amid Strong BTC Spot ETF Trading Vol

As the Bitcoin price set off fears of tanking yesterday, BTC spot ETFs were selling big, according to SoSoValue data. Monday’s trading volume hit $5.29 billion, marking a surge in activity. It was the busiest day for these ETFs since December 2nd, 2025.

Fidelity Wise Origin Bitcoin Fund (CBOE: FBTC) was Monday’s biggest seller. Other sellers include (in decreasing order of amount sold):

• Bitwise Bitcoin ETF (NYSE: BITB): $44.32 million
• Ark & 21Shares Bitcoin ETF (CBOE: ARKB): $34.49 million
• Grayscale Bitcoin Mini Trust ETF (NYSE: GBTC): $27.51 million
• VanEck Bitcoin ETF (CBOE: HODL): $21.25 million

None of the ETFs bought BTC yesterday. Monday is the biggest flow magnitude-wise and the biggest outflow of the month. It is also the biggest outflow since November 20th, 2025, when over $900 million exited ETFs.

FBTC posted net inflows in the first two weeks of December, $61.96 million in week 1 and $84.47 million in week 2. However, the month was not without outflows for the fund. Monday’s outflows were the third time FBTC shed BTC in December.

Interestingly, IBIT, which sways net flows across time frames most frequently due to its massive holdings, did not act yesterday. December’s first week saw net outflows of $87.77 million. Also, the following week showed net inflows of $286.6 million.

Monday’s outflow and the sharp drop in the BTC price pushed BTC spot ETF net assets down to $112.27 billion. They had stood at $118.27 billion at last Friday’s close.

BTC Price Tests Key Support Level

BTC price fell during the overlap between the London Stock Exchange’s and the New York Stock Exchange’s regular trading hours.

BTC dropped more than 3.6% to around $86,620 within the first hour and five minutes of the New York session. That move aligned with the final hour and five minutes of London trading, amplifying volatility.

$85,000 now stands as a key support level after yesterday’s session, as it was almost tested twice.

After testing the $85,140 resistance mark, BTC price ended the New York session at $86,196. However, several hours later, in the Tokyo session, BTC retested the $85,260 level. The 5-minute chart shows a more nuanced picture.

Traders incurred significant losses on their long positions, with $184 million in BTC liquidations recorded yesterday. CoinGlass data shows that 84% of those wiped‑out positions were Longs.

BTC Mining Hashrate Dips After Chinese Mining Farms Shut

Around 400,000 bitcoin mining machines were shut down after a government investigation into mining activity in China’s Xinjiang province. The shutdown caused an 8% drop in computing power.

Jack Kong, the CEO of Nano Labs Limited, a Chinese chip-maker, first reported on the shutdown and its impact. Nano Labs is also a digital asset treasury company.

It holds 1,000 BTC according to Bitcoin Treasuries(dot)Net. Kong first reported on an impending shutdown on December 13th, 2025.

Hashrate is a key security health metric for the Bitcoin network. It needs to remain high to make attacks economically infeasible. A sudden drop like the one reported on Monday potentially spooked the market.

Chinese mining farms are likely to have lost a substantial share of their revenue. That pressure could have pushed them to sell some of their BTC to stay afloat. This could also have added to the overall selling pressure.

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