AUTO-UPDATED

Bitcoin tanks to $74,300 as spot ETFs bleed $2.26 billion in two weeks

Bitcoin prices dropped to $74,300 as U.S.-listed spot exchange-traded funds recorded $2.26 billion in outflows over two weeks amid rising global bond yields and shifting investor risk appetite.

Key Points

  • Bitcoin fell to $74,305 on Saturday, marking a 10% decline from its May 6 peak of over $82,500.
  • U.S. spot Bitcoin ETFs experienced $1.26 billion in outflows this week, the largest weekly redemption since January.
  • Rising U.S. Treasury and global bond yields have reduced market demand for non-yielding assets like cryptocurrency.
  • Speculative capital is shifting toward commodities like oil and copper, as well as pre-IPO derivatives tied to SpaceX.
  • Bitcoin prices recovered slightly following President Trump’s announcement of a peace agreement involving Iran and the reopening of the Strait of Hormuz.

Why it Matters

The significant capital flight from Bitcoin ETFs highlights how macroeconomic factors like rising bond yields can rapidly diminish investor appetite for high-risk digital assets. This shift underscores a broader market rotation as traders reallocate funds toward commodities and speculative pre-IPO opportunities amid geopolitical uncertainty.
CoinDesk Published by Omkar Godbole
Read original