Bitcoin ETFs Shed $229 Million for 9th Day as 3.8% PCE Cements Tight Fed View
Updated
Updated · CryptoSlate · May 31
Bitcoin ETFs Shed $229 Million for 9th Day as 3.8% PCE Cements Tight Fed View
1 articles · Updated · CryptoSlate · May 31
$229 million left spot Bitcoin ETFs on May 28, extending the streak of daily outflows to nine days and signaling continued institutional retreat from crypto exposure.
BlackRock's IBIT accounted for nearly $178 million of the withdrawals as April PCE inflation came in at 3.8% year on year, reinforcing expectations that the Fed will keep policy tight.
Bitcoin fell toward $73,300 after the data and hovered near $73,000 through the weekend, with CME FedWatch showing a 98.9% chance the Fed holds rates at 3.50%-3.75% on June 17.
Nearly $2.7 billion has exited Bitcoin and Ethereum products over two weeks, while traders watch the dollar, Treasury yields and oil prices for clues on whether liquidity pressure will ease before the next PCE report on June 25.
As the Fed plans to shrink its massive balance sheet, what hidden risks does this liquidity withdrawal pose to the global financial system?
Bitcoin has decoupled from money supply metrics. What will anchor its value in an era of persistent inflation and tight money?
With household savings at a 22-year low, can the Fed's inflation fight avoid triggering a severe consumer-led recession?
Bitcoin ETF Outflows Surge to $2.8B: Institutional Selling, Macro Risks, and What’s Next for Crypto Markets
Overview
In recent weeks, institutional investors have pulled back from Bitcoin ETFs, leading to significant outflows and a shift in market sentiment. This retreat triggered large redemptions, especially from major funds like BlackRock’s IBIT, which had to sell underlying Bitcoin to meet investor exits. The resulting supply increase put downward pressure on Bitcoin prices and risked further redemptions. Despite these pressures, the market absorbed the selling in an orderly way, but the overall effect was a notable price decline and heightened caution among investors, reflecting the interconnected impact of institutional actions on the broader crypto market.