Spot Bitcoin (BTC) exchange-traded funds (ETFs) in the U.S. have seen a total of $2.2 billion in outflows over the past two weeks. These large withdrawals were distributed with $1.26 billion flowing out last week and $1 billion the week before.
The largest outflow occurred on Monday, May 18th. The date on which $648 million in expenditures was reported.. This is the worst single-day outflow since January 29, when $819 million was withdrawn from these instruments.
Over the rest of the week, capital outflows gradually declined, but maintained a strictly negative trend, with no days recording net inflows. The fund lost $331 million on Tuesday, $70 million on Wednesday, $100 million on Thursday and $105 million on Friday.
Despite suffering severe losses in two weeks, Bitcoin ETFs They still accumulated net inflows worth $57.1 billion. The total net assets of these financial instruments are concentrated at $98.9 billion, with BlackRock’s IBIT fund alone accounting for 4% of all digital currencies in circulation.
This divestment scenario contributed to a 5% decline in currency pricesfrom an estimated price of $81,200 on May 10th to $76,800 on May 22nd.
To understand how these withdrawals affect prices, it’s worth noting that spot ETFs work by buying and holding the currency that backs each stock on an exchange. This makes them an important and direct factor in the price movement of digital currencies. This support structure means that if investors decide to withdraw their funds and liquidate their positions, the fund management company will be forced to sell some of its Bitcoin holdings to cover these redemptions. If there is an immediate increase in the supply available in the market, there will be no demand from buyers to counter it. exert bearish pressure on asset values.
In addition to the influence of funds on crypto prices, “the main causes are the sharp rise in US bond yields, which reached a 12-month high, the strengthening of the dollar, and geopolitical escalation,” asserted Andri Fauzan Azima, head of research at the Bitrue Institute.
Yields on U.S. government bonds often compete with “riskier” assets like Bitcoin, attracting investors who offer higher return guarantees. Similarly, as reported by CriptoNoticias, the conflict between the US and Iran remained intense after US President Donald Trump threatened to renew military strikes on Tuesday of the same week.
Bitcoin’s financial outlook was partially tied to global diplomatic outcomes. President Donald Trump declared this today, May 24th. There is no rush to reach an agreement to end the war. The United States and Israel maintain relations with Iran.
However, negotiations continue and the two sides are currently discussing the following memorandum of understanding. Establish a roadmap to resolve outstanding issues. If this political document is finalized within the next few days, it could eliminate geopolitical uncertainty and create a new upward impulse for Bitcoin prices in the market.
