Higher U.S. yields curb Bitcoin demand as spot ETFs log biggest weekly outflow since January

ChainCatcher reports that climbing U.S. Treasury yields, along with rising bond yields across major economies, is weighing on demand for high-risk, non-yielding assets such as Bitcoin. At the same time, heightened concern that tensions around Iran could disrupt supply through the Strait of Hormuz has pushed some speculative funds into commodities including crude oil, copper and sulfur. Bitcoin is down more than 3% over the past 24 hours and about 10% from its recent high near $82,500 on May 6, according to market data. The pullback has been accompanied by sustained redemptions from U.S. spot Bitcoin ETFs. U.S.-listed spot Bitcoin ETFs posted roughly $1.26 billion in net outflows this week, the largest weekly withdrawal since January, following nearly $1 billion of outflows the prior week. Total net outflows over the past two weeks have topped $2.26 billion. Separately, market chatter is building that some capital may be rotating toward potential trading opportunities tied to SpaceX's anticipated IPO. Trading volume in blockchain-based pre-IPO derivatives linked to SpaceX has already reached the millions of dollars.