Bitcoin's price has dropped to $103,700, a 2% decrease over the past 24 hours, just days after hitting a record high of $111,970. This comes amid significant outflows from ETFs as market dynamics shift.
ETF Outflows and Their Impact on the Market
According to data from Farside Investors, on May 30, 11 U.S. Bitcoin ETFs collectively saw outflows totaling $616.1 million. BlackRock's iShares Bitcoin Trust (IBIT) alone accounted for $430.8 million, marking the largest single-day outflow since its January 2024 launch. ETF analyst Nate Geraci noted that IBIT has now amassed approximately $70 billion in Bitcoin holdings since launch, calling the recent fund flows 'ridiculous.'
Factors Contributing to Bitcoin's Price Drop
Bitcoin's price drop is also reflective of broader macroeconomic factors. On May 30, the total cryptocurrency market cap fell by 2.12% to $3.34 trillion. Investors cite renewed geopolitical tensions and economic concerns in the U.S. as reasons to reduce risk exposure. High Treasury yields and discussions of inflation have also dampened appetite for volatile assets.
Price Prospects for Bitcoin in the Coming Weeks
Traders will closely watch ETF flows in early June. If outflows continue, they may indicate waning institutional demand for Bitcoin. However, many see these outflows as a temporary trade rather than a full exit from the market. Upcoming U.S. macro data, especially the June 13 CPI report, will be crucial. Analysts point to the $100,000 level as key psychological support. If Bitcoin holds above this mark, it may regain momentum and attempt new highs.
For now, Bitcoin's dip to $103,700 appears more as a correction than a meltdown. Despite market outflows, large holders seem poised to absorb supply, which may help maintain price stability.
