Bitcoin is rapidly losing ground as investors pull billions of dollars out of US-listed spot 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% over the past 24 hours and about 10% below the recent high above $82,500 reached on May 6.
The selloff accompanies a notable rebound in U.S. Treasury yields and parallel increases in Treasury yields across developed markets, reducing appetite for high-risk, zero-yield assets like bitcoin.
Investors pulled $1.26 billion from U.S. spot Bitcoin ETFs this week, the biggest single-week outflow since January, following roughly $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 strong flows of speculative money as markets continue to price in potential supply disruptions through the Strait of Hormuz due to the Iran conflict.
One theory also points to capital being diverted towards SpaceX’s anticipated IPO, with several blockchain-based pre-market derivatives tied to the event already seeing millions in trading volume on blockchain-based platforms.
