Bitcoin Drops More Than 3% as Higher Bond Yields Cool Risk Sentiment

Rising U.S. Treasury yields, along with higher bond yields across major economies, are weighing on demand for high-risk, non-yielding assets such as Bitcoin, analysts say. At the same time, renewed focus on Iran has heightened worries about potential supply disruptions through the Strait of Hormuz, drawing some speculative flows into commodities including crude oil, copper, and sulfur. Bitcoin fell over 3% in the past 24 hours and is about 10% below its recent peak near $82,500 on May 6, according to market data. U.S. spot Bitcoin ETFs have continued to see redemptions during the selloff: U.S.-listed spot Bitcoin ETFs recorded roughly $1.26 billion in net outflows this week, the largest weekly withdrawal since January. The prior week also saw nearly $1 billion in outflows, taking total net outflows over the past two weeks to more than $2.26 billion. Some market participants also point to capital rotating toward potential SpaceX IPO-linked trades. Trading volumes in certain blockchain-based premarket derivatives tied to SpaceX's listing have already reached the millions of dollars. (CoinDesk)