Bitcoin ETF Outflows Hit $490M as BTC Rally Faces Short-Term Pressure

US-listed spot Bitcoin ETFs recorded $490 million in net outflows over three consecutive trading days this week. The selloff coincided with Bitcoin failing to reclaim the $78,000 level, a zone that has repeatedly rejected bullish attempts. While the short-term data looks discouraging on the surface, the bigger picture tells a different story.

Institutional Demand Weakens Amid Market Uncertainty

The recent outflows mark a reversal from the previous two weeks of inflows, though total net inflows since March still stand at $3.3 billion. Market sentiment has been influenced by broader financial conditions, including rising oil prices and underwhelming Big Tech earnings. Equity markets remain mixed, with major technology stocks facing declines, adding to cautious investor behavior.

Inflation, Bond Yields and Risk Sentiment Impact Bitcoin

Macroeconomic pressure is also playing a role. Brent crude surged to $126, while US 5-year Treasury yields climbed to 4.02%, reflecting growing inflation concerns. Higher yields often reduce appetite for risk assets like Bitcoin in the short term, contributing to price resistance.

Long-Term Bitcoin Outlook Supported by Inflation Trends

Despite near-term weakness, rising inflation may support Bitcoin’s long-term appeal. With US GDP growth at 2%, slightly below expectations, and real returns on traditional assets tightening, demand for scarce assets like Bitcoin could strengthen, keeping the path toward $80,000 open.