ETF outflows of over 700 million in a single day, institutions are fleeing risk faster than anyone else. If key levels can't hold, a liquidation chain reaction could really happen.

On May 28th, the cryptocurrency market experienced a significant decline, with BTC falling below $73,000. The spot Bitcoin ETF saw a net outflow of $733.4 million, the largest daily outflow since late January, with IBIT experiencing a net outflow of $527.8 million. Other ETFs also saw negative flows, while MSBT had a slight net inflow. Analysts say that the capital outflows are related to basis position unwinding, institutional de-risking, capital rotation into traditional stock markets, and rising U.S. Treasury yields; if key levels are broken, derivative liquidations will further push prices down. Asian stock markets declined on the same day, with geopolitical risks resurfacing.