Bitcoin drops below $73,000, BlackRock's IBIT records a historic outflow

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BlockBeats News, May 28—In Thursday morning trading, the cryptocurrency market saw a sharp drop, with Bitcoin falling below $73,000. This downturn was accompanied by the largest single-day net outflow since late January from US spot Bitcoin ETFs.

LVRG Research Director Nick Ruck said that this sudden plunge reflects a risk-averse sentiment of taking profits after recent highs, and is also influenced by macro cautious sentiment such as rising US Treasury yields and geopolitical news. The analyst added that the market decline was mainly driven by capital rotating into traditional financial stocks, and once key price levels were broken, large-scale derivatives liquidations further weighed on prices.

Data shows that US spot Bitcoin ETFs recorded a total net outflow of $733.4 million on Wednesday, the largest single-day outflow since January 29. Among them, BlackRock’s IBIT saw a net outflow of $527.8 million, setting the fund’s largest single-day outflow record since its inception. In addition, the other six ETFs, including Grayscale’s GBTC, also recorded negative flows. Only Morgan Stanley’s MSBT recorded a net inflow of $4.3 million. Analysts believe the capital outflows are due to the closing of basis trades and institutional de-risking operations, while IBIT’s record-breaking outflow was influenced by large trades from the previous day.

Presto Research Research Director Peter Chung noted that since mid-May, Bitcoin has shown a “unique trading pattern,” with it continuing to slide over the past two weeks and underperforming risk assets such as the S&P 500 and Nasdaq, which is mainly driven by outflows from spot Bitcoin ETF funds. Analysts are closely monitoring the ETF capital flow momentum and Bitcoin’s support level around $70,000, warning that continued capital outflows could indicate that institutions are further adjusting their crypto asset allocation.

On the macro level, Asian stock markets opened lower on Thursday, with both the Hong Kong Hang Seng Index and Japan’s Nikkei 225 Index falling, as the US and Iran launched new strikes again amid a fragile ceasefire agreement.

BTC-3.37%
IBIT-2.24%
BLK-0.84%
MS-0.35%
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MempoolSparrow
· 2h ago
IBIT can't withstand it either, this liquidation is pretty harsh
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Stop-LossIsLikeAConfession
· 4h ago
Morgan Stanley is actually inflowing, reverse operation?
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BridgeWhisperer
· 4h ago
Asian stock markets + geopolitical pressures, macroeconomic stress is indeed significant
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MintCondition
· 5h ago
If you can't hold 73k, where is the next support level?
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BerryColdWallet
· 5h ago
ETF net outflows hit a record, institutional rebalancing is not over yet
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MirrorPetals
· 5h ago
It started underperforming US stocks in mid-May, and it's not just a day or two's issue.
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