BlockBeats news: On the morning of May 28, the cryptocurrency market experienced a sharp decline, with Bitcoin falling below $73,000. This drop coincided with the largest single-day net outflow from U.S. spot Bitcoin ETFs since late January.
Nick Ruck, Director of LVRG Research, said the sharp decline reflects risk-off sentiment following recent highs, driven by profit-taking and broader macroeconomic caution due to rising U.S. Treasury yields and geopolitical news. Analysts added that the market drop was primarily fueled by capital rotation into traditional financial stocks, and that a breach of key price levels triggered substantial derivatives liquidations, further pressuring prices downward.
Data shows that U.S. spot Bitcoin ETFs recorded a net outflow of $733.4 million on Wednesday, the largest single-day outflow since January 29. Of this, BlackRock’s IBIT saw a net outflow of $527.8 million, marking the largest single-day outflow since the fund’s inception. Additionally, six other ETFs, including Grayscale’s GBTC, also experienced net outflows. Only Morgan Stanley’s MSBT recorded a net inflow of $4.3 million. Analysts attribute the capital outflows to the unwinding of basis trades and institutional de-risking activities, with IBIT’s record outflow influenced by large transactions the previous day.
Peter Chung, Head of Research at Presto Research, noted that Bitcoin has exhibited a "unique trading pattern" since mid-May, consistently declining over the past two weeks and underperforming risk assets such as the S&P 500 and Nasdaq, primarily driven by outflows from spot Bitcoin ETFs. Analysts are closely monitoring ETF fund flows and Bitcoin’s support level near $70,000, warning that sustained outflows may signal that institutions are further adjusting their cryptocurrency allocations.
On a macro level, Asian markets opened lower on Thursday, with both the Hong Kong Hang Seng Index and Japan's Nikkei 225 declining amid renewed strikes by the United States and Iran against the backdrop of a fragile ceasefire agreement.