Bitcoin held near the $60,000 level this week as $1.9 billion flowed out of spot ETFs, pointing to fading demand from large market participants. The move came alongside a sharp sell-off in technology stocks, with the Nasdaq 100 dropping 7.5% and wiping out $2.7 trillion in value—more than twice Bitcoin’s total market capitalization.
Macro pressure weighs on sentiment
Rising oil prices and accelerating inflation have shifted expectations toward tighter monetary policy. Brent crude moved above $90 per barrel following renewed tensions in Iran, raising concerns about global growth as energy costs climb.
At the same time, U.S. producer prices rose 6.5% year-on-year in May, the fastest pace since 2022. Market pricing now shows a 40% probability of a Federal Reserve rate hike by September, up sharply from just 5% a month ago. This shift has reduced appetite for risk assets, including cryptocurrencies.
Weak derivatives signals reflect caution
Bitcoin futures are trading at less than a 4% premium to spot prices, indicating limited demand for leveraged bullish positions. This suggests traders are hesitant to bet on a near-term rebound.
Capital flows favor equities despite volatility
Despite weakness in equities, capital continues to flow into major technology and innovation-driven opportunities. The upcoming $75 billion SpaceX IPO has been more than twice oversubscribed, highlighting strong demand for high-growth listings.
Large firms are also accelerating fundraising to expand artificial intelligence infrastructure. Google plans to raise $80 billion, while Oracle and Super Micro Computer aim for $40 billion and $7 billion respectively.
Geopolitics and policy ease market tension
Markets found some relief after President Trump canceled planned strikes on Iran, signaling a willingness to resume diplomatic discussions around the Strait of Hormuz. The move helped stabilize sentiment amid rising geopolitical risk.
Internal crypto signals show stress
Bitcoin’s recent pullback coincided with Strategy pausing its accumulation to manage debt levels. The firm’s financial flexibility has narrowed, with preferred shares falling below key levels needed for further issuance.
On-chain data also points to weakening conditions. A growing share of Bitcoin supply is being sold at a loss, with the aSOPR metric remaining below 1.0 for nearly two weeks. This suggests traders are exiting positions under pressure.
Realized capital outflows have reached roughly $12 billion since mid-May, reflecting a broader shakeout in the market. While such phases have historically appeared near cycle lows, stabilization is needed before any sustained recovery can take shape.
Outlook hinges on $60,000 support
ETF outflows and weak derivatives positioning reinforce the view that Bitcoin is not currently acting as a hedge against equity declines.
With macro conditions uncertain and sentiment subdued, traders are watching closely to see whether the $60,000 level can hold as a key support zone.
Amid ETF outflows and macro volatility, learn how Bitcoin ETF outflows could reshape market sentiment and your trading strategy.
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