The report noted that the pullback in Bitcoin was not limited to price movements alone. It stated that there was a net outflow of approximately $1 billion from US spot Bitcoin ETFs last week, ending a six-week streak of uninterrupted inflows. The IBIT ETF, offered by BlackRock, one of the world’s largest asset management companies, was also affected by institutional withdrawals. Furthermore, the weakening seen in yield-generating products like STRC indicated a simultaneous narrowing of marginal demand sources in the market.
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On-chain data also indicates weakening market momentum. While monthly capital inflows remain positive at around $2.8 billion, this is significantly below the $10 billion inflow levels seen during strong bull markets. According to Bitfinex, this suggests that despite Bitcoin’s recovery towards $82,000, institutional investors are not demonstrating sufficient confidence to absorb macroeconomic shocks.
On the macroeconomic front, it was stated that the “long-term high interest rate” scenario in the US has regained strength. The rise in April’s CPI data to 3.8% year-on-year showed that not only energy prices but also persistent inflation in the services sector increased price pressure. With real wage growth turning negative and long-term US Treasury yields reaching their highest levels in recent years, it was noted that markets have begun to withdraw their expectations of interest rate cuts this year.
The report specifically stated that disruptions in the Strait of Hormuz negatively impacted global oil supply, and that Brent crude oil prices rising above $100 per barrel increased inflationary pressures. It noted that rising energy costs directly impacted fuel, transportation, and consumer prices, weakening appetite for risky assets.
Despite this, it was emphasized that regulatory developments and institutional expansion continue in the crypto sector. The US Senate Banking Committee’s advancement of the CLARITY Act was seen as a significant step toward more clearly defining the boundaries of authority between the SEC and the CFTC. Furthermore, the launch of the spot Hyperliquid ETF with integrated staking rewards by digital asset management company Bitwise demonstrated continued institutional interest in advanced crypto investment products beyond $BTC and ETH.
However, Bitfinex warned that rising inflation expectations and increasing bond yields could increase pressure on digital asset markets in the short term. According to the company, strong outflows from spot Bitcoin ETFs indicate that investors are beginning to reduce their exposure to risky assets.
*This is not investment advice.