bitcoin is rapidly losing ground as investors withdraw 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 data from CoinDesk. At the time of writing, BTC was down more than 3% in the last 24 hours and about 10% below its recent high of over $82,500 reached on May 6.
The sell-off is accompanied by a notable rally in US Treasury yields and parallel rises in government bond yields in developed markets, which are reducing appetite for high-risk, zero-yield assets like bitcoin.
Investors withdrew $1.26 billion from U.S. spot Bitcoin ETFs this week, the largest outflow in a single week 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 hot money flows as markets continue to price in potential disruptions to supply through the Strait of Hormuz due to the conflict with Iran.
One theory also suggests that capital is being redirected towards the anticipated SpaceX IPO, with several blockchain-based pre-market derivatives tied to the event already recording millions in trading volume on blockchain-based platforms.
