Bitcoin Price Hit by Weaker ETF Flows and Rising Macroeconomic Concerns

Bitcoin's price took a hit recently due to a combination of factors. Weaker ETF flows and rising macroeconomic concerns weighed heavily on market sentiment. At the same time, increased short positions led to nearly $109.7 million in long liquidations over three days.

CryptoQuant analyst Easy On Chain analyzed the data and found that exchange netflows turned positive on May 11. This indicates that more Bitcoin was moving onto trading platforms, rather than being withdrawn. As a result, outflows dropped to 19,995 BTC from previous levels between 28,000 and 35,000 BTC.

The analyst noted that weaker withdrawals reduced buying pressure and increased available sell-side liquidity on exchanges. This created a perfect storm of negative factors that led to Bitcoin's decline. Easy On Chain also pointed out that traders sharply increased short positions between May 8 and May 10. Open interest moved above average levels, while funding rates remained negative.