Key Takeaways:
Bitcoin ETF outflows accelerated to $1.4 billion last week as rising Treasury yields pushed institutional capital toward fixed income.
Bitcoin fell 1% to $76,800 on Tuesday as US spot Bitcoin ETFs recorded $1.26 billion in outflows over the past two weeks, the longest institutional sell streak since January.
"This steady drip of outflow continues to add to the supply side without a visible demand offset," Glassnode said in a report Monday, noting that US Bitcoin ETFs have posted net outflows on nearly every trading day since May 7.
The outflows broadened across global crypto ETP markets, with the US leading at $1.43 billion, followed by Switzerland ($16.2 million), Canada ($12.5 million) and Hong Kong ($12.2 million), CoinShares data shows. Short Bitcoin products attracted $10.2 million in inflows, aligning with the risk-off posture. Total assets under management in crypto ETPs stood at about $148.7 billion, with Bitcoin funds making up 80% at $120.2 billion.
The selling pressure comes as the 10-year Treasury yield pushed higher on hawkish rate expectations, reducing the opportunity cost of holding non-yielding assets like Bitcoin. Jeff Ko, chief analyst at CoinEx, said the broader market "remains in a holding pattern," with institutional risk appetite "still sensitive at the margin." Bitcoin's ability to defend the $75,000 to $76,000 support zone will determine whether the current consolidation resolves higher or extends the drawdown toward $72,000, a level last tested in February.
$2 Billion in Two Weeks
The outflows mark a sharp reversal from the first four months of the year, when spot Bitcoin ETFs drew more than $12 billion in net inflows. CoinShares attributed the shift to "a persistent institutional sell signal" triggered by macro uncertainty and a reassessment of rate-cut timing.
Vikram Subburaj, CEO of Indian exchange Giottus, said sustained ETF outflows have made it difficult for Bitcoin to reclaim the $78,000 to $80,000 recovery zone. "Many recent buyers are still holding unrealized losses. In such phases, rallies usually struggle until those holders return to profit," he said.
Corporate Treasuries Buy the Dip
While ETF flows signal institutional caution, corporate Bitcoin treasury buyers stepped in during the pullback. Strive, DDC, and SWC each disclosed purchases at average prices between $77,687 and $79,496 per Bitcoin, according to SEC filings. Hyperscale also acquired Bitcoin on Sunday, when the asset closed at $76,981.
The buying follows Strategy's $2.01 billion acquisition of 24,869 Bitcoin between May 11 and May 17 at an average price of $80,985 per coin — its third-largest investment of 2026. There are now about 198 public Bitcoin treasury companies holding 1.24 million Bitcoin, or roughly 5.9% of the total supply, Bitcointreasuries data shows.
Geopolitical Noise, Macro Signal
Bitcoin's intraday dip on Tuesday was exacerbated by reports of fresh US strikes on Iranian missile sites, though the asset recovered quickly as traders looked through the geopolitical noise. Riya Sehgal, research analyst at Delta Exchange, described the market as in a "cautious consolidation phase," with upside momentum facing resistance as traders remain defensive.
The next trigger for Bitcoin comes Thursday with the release of the Fed's preferred inflation gauge, the core PCE price index. A hotter-than-expected print could push yields higher and extend ETF outflows, while a cooler number may trigger a short-covering rally toward $80,000.
This article is for informational purposes only and does not constitute investment advice.
