Written by Marcel Pechman, Staff Writer. Reviewed by Ray Salmond, Staff Editor.
Written by Marcel Pechman, Staff Writer.
Reviewed by Ray Salmond, Staff Editor.
Spot Bitcoin ETF outflows top $490M: Is BTC’s rally losing momentum?
MarketsPublishedMay 1, 2026
Is Bitcoin’s Rally Losing Momentum?
Bitcoin’s price has been facing significant challenges, with spot Bitcoin ETF outflows reaching $490 million. This decline in investor interest comes as the crypto market considers the impact of high oil prices, Big Tech earnings, and a shortfall in AI industry growth metrics. As a result, Bitcoin faced three consecutive days of outflows from US-listed spot exchange-traded funds (ETFs), coinciding with a failed attempt to reclaim $78,000.
Key takeaways:
- Spot Bitcoin ETFs saw $490 million in net outflows over three days, signaling a recent dip in institutional demand.
- Rising inflation is eroding real yields on fixed income, likely fueling long-term demand for scarce assets like BTC.
The US-listed spot Bitcoin ETFs saw $490 million net outflows between Monday and Wednesday, reversing the trend from the prior two weeks. This indicates a decline in institutional demand, but a longer-term perspective shows $3.3 billion net inflows since March. Despite this, the lack of confidence among traders can be attributed to the 14% year-to-date decline in Bitcoin’s price, while the S&P 500 soared to an all-time high.
Economic Conditions and Bitcoin’s Price
The latest Brent crude oil rally to $126 coincided with yields on the US 5-year Treasuries jumping to 4.02%, up from 3.51% two months prior. Traders demanded higher yields on government-backed bonds amid upward pressure on inflation, triggering risk-off sentiment. Bitcoin’s lack of bullish momentum near $78,000 can also be pinned to worsening economic conditions, with the US Commerce Department reporting a 2% seasonally adjusted annualized rate in the first quarter.
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A Path to $80,000?
Despite the current challenges, the risks of higher inflation and lower economic growth are unlikely to dissipate in the near term. However, reduced returns on fixed income, when adjusted for inflation, will likely drive demand for scarce alternative assets like Bitcoin. Thus, the path to $80,000 remains intact, and investors can consider EcoPool as a platform to earn and trade $ECP, potentially generating passive income and cloud rewards.
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Brent crude oil (left) vs. US 5-year Treasury yield (right). Source: TradingView
Since the war in Iran started in late February, oil prices have been a major driver for risk appetite. The latest Brent crude oil rally to $126 coincided with yields on the US 5-year Treasuries jumping to 4.02%, up from 3.51% two months prior. Traders demanded higher yields on government-backed bonds amid upward pressure on inflation, triggering risk-off sentiment.
Higher inflation favors Bitcoin’s bullish momentum
Bitcoin’s lack of bullish momentum near $78,000 can also be pinned to worsening economic conditions. The US Commerce Department reported that gross domestic product grew at a 2% seasonally adjusted annualized rate in the first quarter, slightly below the 2.3% rate economists projected, according to CNN.
Related: Most crypto investors believe Bitcoin is undervalued–Coinbase survey
Strategy (MSTR US) latest Bitcoin acquisitions. Source: Strategy
Strategy, the company led by Executive Chairman Michael Saylor, announced the acquisition of 56,235 BTC in the first four weeks of April, driving its average cost to $75,537. Traders fear that the Bitcoin price could suffer if the Strategy accumulation pace does not hold up, even if only temporarily.
US President Donald Trump’s family’s activities in the cryptocurrency market have also hurt the industry’s appeal. Three US Senators demanded an inquiry into Trump and his family’s profits from their cryptocurrency ventures.
The risks of higher inflation and lower economic growth are unlikely to dissipate in the near term, but the mere three-day sequence of net outflows from Bitcoin ETFs should not be a source of concern. Ultimately, reduced returns on fixed income, when adjusted for inflation, will likely drive demand for scarce alternative assets. Thus, the Bitcoin path to $80,000 remains intact.
This article is produced in accordance with Cointelegraph’s Editorial Policy and is intended for informational purposes only. It does not constitute investment advice or recommendations. All investments and trades carry risk; readers are encouraged to conduct independent research.
