Bitcoin experienced significant outflows from spot ETFs and a bearish options expiry, signaling waning institutional demand. Investors are shifting focus to tech stocks, driven by strong earnings and government support for AI initiatives, while fixed income offers a safer hedge.
Bitcoin ETFs experienced significant outflows, totaling $469 million, signaling waning institutional interest. This, coupled with a put-heavy options expiry and rising US Treasury yields, has shifted investor focus towards tech stocks, which are showing strong performance.
Glassnode's latest report indicates Bitcoin is in a deep discount phase, with over 95% of short-term holders underwater. Recovery is likely dependent on the dollar index (DXY) falling below 99 or 10-year Treasury yields compressing towards 4.2%.
Bitcoin fell nearly 7% from its $82,800 peak as whales shifted from accumulation to distribution. Realized losses surged over $600 million in a day, with long-term holders bearing the brunt, signaling a potential momentum shift.
Trump Media’s $405.9 million net loss was driven mostly by unrealized losses on Bitcoin bought at last summer’s peak and Cronos tokens acquired through a Crypto.com deal.
The crypto treasury company continues to buy Ether and earn staking rewards, even as price swings leave billions in unrealized losses on its balance sheet.
A CEX.IO survey of 1,100 US-based active crypto traders finds 36% reduced everyday spending due to market conditions, with 10% making significant sacrifices. 37% reported delaying or cancelling purchases, including 21% postponing major financial commitments like home or car purchases. Bitcoin remains about 40% below its October 2025 high. Despite the downturn, 79% plan to hold or increase positions over the next six months.
