New Bitcoin ETF outflows are exposing BTC to Wall Street’s most crowded trade

Rising US Treasury yields are creating significant headwinds for Bitcoin, as global fund managers aggressively reduce bond exposure in favor of equities. Because Bitcoin is a highly liquid, non-yielding asset, it is often sold first when investors need to exit risk or cover positions during periods of financial tightening. Despite expectations that spot Bitcoin ETFs would insulate the cryptocurrency from macro-economic volatility, recent large net outflows demonstrate that institutional demand cannot fully offset the pressure from surging interest rates. Ultimately, Bitcoin's short-term price performance remains tethered to Treasury market stability, with its role as a hedge against sovereign debt potentially undermined by immediate liquidity concerns.

(Source：CryptoSlate)