Bitcoin ETF Declines Widen in Late Trading as Cryptocurrency Falls Below $70,000 Amid Macroeconomic Headwinds

Stock News15:23

Bitcoin exchange-traded funds saw their losses accelerate during the late trading session. At the time of reporting, Bosera Bitcoin (03008) was down 3.94%, trading at HK$5.37. Harvest Bitcoin (03439) fell 3.87% to HK$8.565. MBC Bitcoin (03430) dropped 3.75% to HK$4.778. Huaxia Bitcoin (03042) declined 3.73%, reaching HK$8.515.

This movement coincided with Bitcoin's price dropping below the $70,000 mark for the first time since April 8th. In related news, Michael Saylor's company, MicroStrategy (MSTR.US), recently sold 32 bitcoins, raising approximately $2.5 million at an average price of $77,135 per coin.

This sale follows the company's recent announcement of a shift in its long-term capital allocation strategy. The firm is moving away from the "never sell" philosophy previously championed by Saylor, opting instead for a more proactive approach to managing its balance sheet.

Notably, data shows that from May 15th to 28th, U.S.-listed spot Bitcoin ETFs experienced a cumulative net outflow of around $2.8 billion. This marked nine consecutive trading days of fund redemptions, setting the longest streak of continuous outflows since the products launched in January 2024.

Analysts point to rising U.S. Treasury yields as a key factor. The 30-year Treasury yield surpassed 5.2% in late May, reaching its highest level since 2007. This has intensified market expectations for a more hawkish stance from the Federal Reserve.

Investors are readjusting their expectations for prolonged higher interest rates, which is strengthening the U.S. dollar and draining liquidity from speculative asset classes like cryptocurrencies, thereby reducing their relative appeal.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment