Slowing ETF Outflows Meet Hawkish Bond Yields: What's Next for Bitcoin?

As traders return to their desks after an extended weekend, there are two market dynamics that could influence the price of Bitcoin and other major cryptocurrencies. The first is related to Bitcoin spot exchange-traded funds (ETFs) listed in the US, which lost another $228 million in redemptions last week, taking the cumulative figure to $5.94 billion.

This marks a sixth straight week in the red for these ETFs, but the good news is that the bleeding has slowed down for two consecutive weeks. The previous four weeks saw outflows exceeding $1 billion each week, with withdrawals growing larger with each passing week.

According to Tagus Capital, 'the slowdown indicates that the most aggressive phase of institutional de-risking is fading, with flows shifting toward more selective and balanced positioning.' While this points to a stabilizing ETF demand backdrop, investors are still gradually repositioning capital, providing a potential floor to downside.

The other notable dynamic is the decoupling of the US two-year Treasury yield from WTI crude oil futures. As oil prices have collapsed, the two-year yield has strengthened, hovering at 4.21% as of this writing, the highest since February 2025.