BTC plummeted below $73,000! BlackRock's IBIT saw a $733 million outflow in a single day, nearly matching its all-time record.

U.S. spot Bitcoin ETFs recorded a net outflow of $733.4 million on Wednesday, the largest single-day loss since late January. BlackRock's IBIT saw a single-day outflow of $527.8 million, just $460,000 shy of its all-time record. Bitcoin fell below $73,000 in early Asian trading on Thursday, with derivative liquidations accelerating the decline as analysts closely monitor the $70,000 support level. (Context: Bitcoin slips to $75,500, Ethereum drops below $2,100: Dow hits record high, while crypto weakens independently) (Background: Quantitative giant Jane Street slashes Bitcoin ETF holdings: IBIT and FBTC both cut by over 60%) Key Highlights - The 11 U.S. spot Bitcoin ETFs saw a net outflow of $733.4 million on Wednesday, the largest single-day loss since January 29. - BlackRock's IBIT saw a single-day outflow of $527.8 million, just $460,000 away from its all-time record set on January 30. - Bitcoin fell below $73,000; analysts warn that continued ETF outflows may signal that institutions are adjusting their crypto asset allocations. After the market closed on Tuesday, a $1.29 billion block trade appeared in the IBIT dark pool, and the market provided the answer the next day. The 11 U.S. spot Bitcoin ETFs saw a combined net outflow of $733.4 million on Wednesday, ending the previous short-lived trend of capital inflows. The intensity of institutional selling pressure caused the total ETF net inflow for May to shrink to just $536 million. Nick Ruck, Director of LVRG Research, stated that this sharp decline reflects risk-averse sentiment as investors take profits after recent highs, while also being influenced by macro factors such as rising U.S. Treasury yields and escalating geopolitical tensions. Capital has not disappeared but has rotated into traditional financial stocks, and once key price levels were breached, massive derivative liquidations further pushed prices down. IBIT misses record by $500,000 BlackRock's IBIT saw a single-day net outflow of $527.8 million, a figure just $460,000 short of the $528.3 million record set on January 30, marking nearly the worst day since its inception. Grayscale's GBTC saw an outflow of $104.8 million, Fidelity's FBTC lost $60.3 million, and six other funds also recorded negative flows. The only bright spot among the 11 ETFs was Morgan Stanley's MSBT, which bucked the trend by attracting $4.3 million. Analysts pointed out that the $1.29 billion IBIT dark pool block trade on Tuesday was the catalyst; large sellers offloaded off-exchange first, triggering a chain reaction of follow-on selling the next day. From another perspective, the scale of this dark pool trade was larger than the total net outflow of all ETFs that day, indicating that off-exchange selling pressure is far deeper than the headline figures suggest. BTC underperforms S&P and Nasdaq for two weeks Peter Chung, Head of Research at Presto Research, pointed out that Bitcoin has exhibited a "unique trading pattern" since mid-May, trending lower for two consecutive weeks and significantly underperforming risk assets like the S&P 500 and Nasdaq, driven primarily by spot ETF outflows. Year-to-date, over $2 billion has been withdrawn from ETFs, and the overall net inflow for 2024 has shrunk significantly from its peak to just $536 million. Analysts are closely watching the $70,000 level, warning that if ETF outflows continue, it could signal that institutions are further adjusting their crypto asset allocations. There are no signs of relief on the macro front either. Asian markets opened lower on Thursday, with the Hang Seng Index falling 0.69%. Amid a fragile ceasefire agreement, the U.S. and Iran have exchanged strikes again, and Kuwait even activated its air defense systems to intercept missile and drone threats. Oil prices jumped 3%, and risk-averse sentiment has spread from the stock market to the crypto market. FAQ Why are there large-scale capital outflows from Bitcoin ETFs? The main reasons include the unwinding of basis trades, institutional de-risking, and risk-averse sentiment triggered by rising U.S. Treasury yields. BlackRock's IBIT saw a $1.29 billion dark pool block trade the day before, which triggered a chain reaction of selling the next day, resulting