U.S.-listed spot Bitcoin (CRYPTO: $BTC) exchange-traded funds (ETFs) have experienced $2.26 billion U.S. in outflows over the past two weeks.
Analysts say the ETF outflows are largely responsible for keeping Bitcoin’s price below $80,000 U.S. and treading water around $77,000 U.S. currently.
Over the weekend, BTC briefly fell below $75,000 U.S. and was down about 10% from its recent high of just over $82,500 U.S. reached on May 6 of this year.
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Analysts add that Bitcoin ETF redemptions have accelerated as U.S. Treasury yields have risen in recent weeks, hitting their highest peak since 2007 before the global financial crisis.
Higher bond yields reduce investors’ appetite for non-yielding assets such as Bitcoin.
Investors withdrew $1.26 billion U.S. from spot Bitcoin ETFs over the past week, the largest weekly outflow since January. That followed $1 billion U.S. in outflows the previous week.
At the same time, commodities such as crude oil and copper are seeing strong flows of speculative money as markets price in potential supply disruptions due to the Iran war.
Some analysts are also claiming that speculative capital is starting to be redirected toward SpaceX’s upcoming June initial public offering (IPO), hurting spot Bitcoin ETF flows.
BTC hit an all-time high of just over $126,000 U.S. last October.