Cryptocurrency Market Under Pressure from Rising Treasury Yields

The cryptocurrency market has been under pressure due to rising Treasury yields and inflation concerns, leading to significant outflows last week. According to Farside Investors, US spot Bitcoin ETFs recorded $290.4 million in net outflows on May 15, following a heavy $630.4 million outflow on May 13.

Ethereum ETFs also saw outflows, with $65.7 million leaving on May 15 and $36.3 million on May 13. In contrast, Solana's ETFs were relatively flat, with a weekly total staying positive after earlier inflows.

The CLARITY Act, which aims to define when crypto tokens should be treated as securities or commodities, moved forward in the Senate Banking Committee with a 15-9 vote on May 14. However, it still faces hurdles on the Senate floor, including concerns around anti-money laundering rules and potential conflicts of interest.