Spot Bitcoin ETFs traded in the United States recorded net outflows totaling $490 million across three consecutive days. This sharp downturn signals a short-term drop in institutional demand, coming on the heels of robust inflows observed over the prior two weeks. Despite this recent outflow trend, total net inflows since March have reached $3.3 billion, keeping the broader outlook positive for the cryptocurrency sector.
BTC price swings and macroeconomic pressures
Bitcoin was unable to reclaim the $78,000 mark in recent attempts, with three straight days of fund outflows denting investor confidence. Since the start of the year, BTC value has dropped by 14%, while the S&P 500 index climbed to record highs. Disappointing quarterly earnings from tech giants led to declines in the sector, with Meta stock falling by 9% and Microsoft by 4%. This landscape reduced risk appetite across markets and contributed to waning interest in Bitcoin.
Rising oil prices and a jump in U.S. bond yields further intensified risk aversion among investors. Brent crude surged to $126 since March, while yields on five-year U.S. Treasury notes rose from 3.51% two months ago to 4.02%. Investor demand for higher returns on government bonds increased amid persistent inflation pressures, prompting greater movement toward perceived safe-haven assets.
Inflation pressure and Bitcoin’s long-term outlook
Elevated inflation in the U.S. has been eroding the real returns of fixed-income assets, prompting speculation that supply-limited alternatives like Bitcoin could see stronger demand in the long run. The U.S. Department of Commerce announced 2% GDP growth for the first quarter, falling short of economists’ forecasts of 2.3%. According to CNBC, current macroeconomic conditions could favor the long-term prospects of assets such as BTC.
Reporting from the U.S. Department of Commerce confirmed that the country’s gross domestic product expanded by 2% in the first quarter, just under economists’ expectations.
Meanwhile, Strategy, the company led by Michael Saylor, revealed it added 56,235 BTC to its portfolio over the first four weeks of April. This drove the firm’s average acquisition cost up to $75,537. Some market observers worry that if Strategy slows these aggressive purchases, short-term pressure on BTC prices could emerge.
Geopolitical movements and political impact
A sharp rise in oil prices, triggered by the onset of war in Iran at the end of February, has shaped overall market risk sentiment worldwide. At the same time, activities by former President Donald Trump’s family in the crypto market have weighed on the sector’s appeal. In the U.S., three senators have called for an official investigation into profits gained by Trump and his family through crypto investments, placing both political and regulatory risks on the front burner.
In a global environment marked by inflationary pressures and modest economic growth, the recent three-day outflow from spot Bitcoin ETFs is not causing broad alarm. Experts suggest that as inflation weakens the attraction of fixed-income assets, investors’ search for alternative stores of value could persist. Within this context, an $80,000 price target for Bitcoin remains a plausible base scenario among many analysts.
