Bitcoin (CRYPTO: $BTC) has been struggling this year, and recent data suggests investors are heading for the exits. The leading cryptocurrency is down 15% this year, falling below $75,000 on Wednesday.

While market volatility typically pushes some investors toward alternative assets, sentiment around digital currencies remains bearish. This is even as the overall stock market has been doing well, with the S&P 500 rising by around 10% thus far in 2026.

A look at recent spot ETF history reveals a troubling trend of outflows. On Tuesday, spot funds saw a net outflow of $333.7 million. This was not an isolated event, either; the last time there was a positive inflow was back on May 14, when the funds coming in totaled $131.3 million. By and large, however, there’s been a fairly large exodus taking place of late.

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This sustained capital flight is bad news for the asset. ETFs were supposed to provide long-term stability and open the floodgates for retail capital. Instead, the rapid departures indicate investors are pivoting toward defensive stocks to safeguard portfolios amidst broader uncertainty or into tech to benefit from the rally in AI. Even with a crypto-friendly government in place in the U.S., there hasn’t been a big catalyst for Bitcoin to rally around this year.

What’s worse is that the leading cryptocurrency could be vulnerable to further downward pressure, especially if interest rates rise this year, as that may further discourage speculative investors from buying crypto. While the digital currency did rise above $80,000 earlier this month, the breakout proved to be short lived. 

For long-term investors, now may be an attractive time to build up a position in Bitcoin while its value is low, but it may continue to be a rough ride in the weeks and months ahead.