US spot Bitcoin ETFs just had their worst week in months, shedding roughly $1.4B in net outflows over seven days ending May 25. The catalyst isn’t some crypto-specific scandal or regulatory crackdown. It’s the bond market doing what the bond market does best: ruining the party.
Rising Treasury yields have effectively crushed expectations for imminent Federal Reserve rate cuts, sending institutional investors scrambling toward a risk-off posture.
The numbers tell a brutal story
The seven-day hemorrhage included at least one single-day redemption exceeding $648.6M. Since May 7, Bitcoin ETF outflows have totaled approximately $2.7B. That figure follows what had been a remarkable inflow streak earlier in the month, when billions were pouring into spot Bitcoin products week after week.
Treasuries are calling the shots
