Higher U.S. yields sap demand for Bitcoin exposure

Huo Xing Finance cited analysis indicating that the rise in U.S. Treasury yields, alongside higher bond yields across major global economies, is curbing investor demand for high-risk, non-yielding assets such as Bitcoin. At the same time, escalating concerns about potential supply disruptions in the Strait of Hormuz tied to developments in Iran have intensified, drawing some speculative funds into commodities including crude oil, copper and sulfur. Market data shows Bitcoin has fallen more than 3% over the past 24 hours and is about 10% below its recent high of roughly $82,500 on May 6. Outflows from U.S. spot Bitcoin ETFs have persisted through the downturn. U.S.-listed spot Bitcoin ETFs posted net outflows of about $1.26 billion this week, the largest weekly withdrawal since January. The prior week saw outflows close to $1 billion, taking total net outflows over the past two weeks to more than $2.26 billion. Speculation is also building that some capital is rotating toward potential trading opportunities linked to SpaceX's upcoming IPO. Trading volumes in blockchain-based pre-IPO derivatives tied to SpaceX have already reached millions of dollars.