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Bitcoin Shrugs off CLARITY gains as Institutions Sell Amid Surging Treasury Yields
TL;DR
Bitcoin faces significant outflows as institutional investors sell off amid rising Treasury yields, with netflows dropping to -$88M/day. The cryptocurrency struggles to maintain its value above $80,000, facing resistance at $82,000.
Key points
- Bitcoin ETF netflows dropped to -$88M/day
- 10-year Treasury yield reached 4.52%
- April CPI at 3.8%, highest in three years
- Key support level for Bitcoin is $77,000
- Bitcoin trading around $80,350
Mentioned in this story
Glassnode
In brief
- The 7D-SMA of US spot Bitcoin ETF netflows dropped to -$88M/day, the largest outflow since mid-February, Glassnode said.
- The 10-year Treasury yield hit 4.52%, and April CPI came in at 3.8% year-over-year—the highest in three years—pushing back expectations of a Fed rate cut.
- Analysts say $77,000 is the key support level; a break below, with open interest still elevated, could trigger a deleveraging phase.
Bitcoin is struggling to hold above $80,000 as institutional investors exit ETFs amid rising Treasury yields, even as the CLARITY Act passed the Senate Banking Committee on Thursday
The leading crypto is up 0.8% over the past 24 hours and is trading at around $80,350, according to CoinGecko data, after multiple failed attempts to overcome the $82,000 hurdle—a resistance zone that encompasses the ETF cost basis, 200-day moving average, and the now-filled CME gap.
The 7D-SMA of U.S. Spot ETF netflow dropped to -$88M/day, the largest outflow since mid-February, Glassnode said in a Telegram post Thursday. “This wave is selling into strength," Glassnode analysts wrote, adding that, "Institutional participants were using the recovery over the recent days as an exit, not responding to fear.”
So, what gives?
The institutional exit comes as the 10-year U.S. Treasury yield climbed to 4.52% on Friday, its highest in roughly 10 months. The U.S. CPI for April rose 3.8% year-over-year—the highest in three years—pushing back market expectations of a Fed rate cut, analysts said.
Analysts link both developments to the ongoing war in the Middle East, which has kept energy prices elevated and fed into inflation readings. BofA Global Research has revised its Fed rate cut expectations and believes the Fed will hold the 3.50% to 3.75% rates for the rest of this year. However, BoFA research analysts expect two quarter-point cuts in July and September 2027, respectively, according to Reuters. Goldman Sachs, however, expects cuts in December 2026 and March 2027.
Q&A
What are the recent Bitcoin ETF netflows and their significance?
The recent Bitcoin ETF netflows dropped to -$88M/day, indicating the largest outflow since mid-February, which suggests institutional investors are exiting their positions.
How are rising Treasury yields affecting Bitcoin's price?
Rising Treasury yields, which recently hit 4.52%, are contributing to Bitcoin's struggle to maintain its value above $80,000 as institutional investors sell off.
What is the key support level for Bitcoin and its implications?
Analysts identify $77,000 as the key support level; a break below this could trigger a deleveraging phase due to elevated open interest.
What is the current trading price of Bitcoin?
Bitcoin is currently trading at around $80,350, having increased by 0.8% over the past 24 hours.
