Bitcoin has dropped to $74,300, marking a decline of over 10% from its early May peak, as U.S. and global bond yields rise. This downturn is compounded by significant outflows from U.S.-listed spot Bitcoin exchange-traded funds (ETFs), which have experienced more than $2.26 billion in redemptions over the past two weeks, including $1.26 billion in the last week alone—the largest single-week outflow since January.
The increase in Treasury yields is dampening demand for riskier assets like Bitcoin, as investors shift their focus to commodities such as oil and copper, which are benefiting from speculation around potential supply disruptions. Additionally, some capital appears to be redirected toward pre-IPO investments in SpaceX, with blockchain-based derivatives tied to the event seeing heightened trading activity.
For market professionals, the substantial outflows from Bitcoin ETFs signal a critical shift in investor sentiment, highlighting the need to monitor bond yield trends and their impact on high-risk asset classes.
Source: coindesk.com