Bitcoin is rapidly losing ground as investors pull out billions of dollars from U.S.-listed spot ETFs.
The world’s largest cryptocurrency fell to $74,305 early Saturday, its lowest level since April 20, according to CoinDesk data. As of writing, BTC was down more than 3% over the past 24 hours and approximately 10% below its recent high of over $82,500 reached on May 6.
The sell-off accompanies a notable upswing in U.S. Treasury yields and parallel increases in government bond yields across developed markets, which are reducing appetite for high-risk, zero-yielding assets like bitcoin.
Investors withdrew $1.26 billion from U.S. spot Bitcoin ETFs this week, the largest 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 redirected toward 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.