Bitcoin is rapidly losing ground as investors withdraw billions of dollars from U.S.-listed cash ETFs.
The world’s largest cryptocurrency fell to $74,305 early Saturday, its lowest level since April 20, according to CoinDesk data. At the time of writing, BTC was down more than 3% in the past 24 hours and around 10% below its recent high of over $82,500 hit on May 6.
This sell-off is accompanied by a notable rise in US Treasury yields and a parallel increase in government bond yields in developed markets, reducing appetite for high-risk, zero-return assets like Bitcoin.
Investors withdrew $1.26 billion from U.S. spot Bitcoin ETFs this week, the largest one-week outflow since January, following around $1 billion in outflows the previous week. In total, the funds have seen more than $2.26 billion in redemptions over the past two weeks.
Meanwhile, commodities such as oil, copper and sulfur are seeing large inflows of hot money as markets continue to anticipate possible supply disruptions across the Strait of Hormuz due to the Iranian conflict.
One theory also indicates that capital will be redirected to SpaceX’s planned IPO, with several pre-market blockchain-based derivatives tied to the event already seeing millions of dollars in trading volume on blockchain-based platforms.
