Crypto funds have recorded three consecutive months of outflows for the first time, a historic milestone flagged by the on-chain analytics account Rand. This sustained period of withdrawals breaks the earlier market pattern characterized by sporadic inflows and outflows, prompting close observation from investors. The outflows encompass both retail and institutional flows, with US spot Bitcoin exchange-traded funds being a major contributing focus. Initial enormous inflows into these ETFs have significantly trimmed down, resulting in painful paper losses for many holders of the newest shares. Despite the alarming recent bleed and steep paper losses, analysts like James Seyffart and Jim Bianco note that ETF holders have largely not fled their positions. The market is currently experiencing a slow retreat rather than a full-scale selloff, as the large sums entered during peak months still dwarf the recent outflows in the longer run. The sizable drop in spot Bitcoin's price over the last thirty days pushed many ETF positions into the red, with some holders facing losses around the low forty percent range. Even with current losses, a fair share of capital that flowed in earlier remains parked in ETFs, indicating conviction has not entirely collapsed. Long-term performance since 2022 still favors Bitcoin holders, with cumulative gains outpacing several traditional stores of value, providing a counterpoint to the short-term outflow narrative. The three-month outflow run is a sobering marker signaling caution has spread, placing the market in a rare position: bruised but not emptied.