Tag Archives: us

Bitcoin ETFs just lost US$1B: What smart money knows that you don’t

Bitcoin ETFs just lost US$1B: What smart money knows that you don’t

United States spot Bitcoin exchange-traded funds experienced their most severe single-day outflow since late January. Investors pulled approximately US$648.6 million from these products in just one trading session, marking a stark reversal of fortune for digital asset investment vehicles that had enjoyed relatively stable inflows in recent months. This exodus represents more than an isolated incident, as cumulative withdrawals across roughly five trading days have now reached approximately US$1.8 billion, with close to US$1 billion exiting these funds in just the most recent 24 to 48-hour period.

BlackRock’s iShares Bitcoin Trust bore the brunt of this selling pressure, accounting for roughly US$448 million of the total outflows. The redemption scale from the market’s largest Bitcoin ETF underscores the seriousness of the investor retreat. Ark 21Shares’ ARKB product saw approximately US$110 million in outflows, while Fidelity’s FBTC experienced about US$63 million in redemptions. The selling pressure proved to be universal across the sector, with smaller but notable withdrawals affecting products from Bitwise, VanEck, Invesco, and Franklin. Not a single Bitcoin ETF recorded inflows on May 18, painting a picture of wholesale investor retreat from cryptocurrency exposure through regulated investment vehicles.

This Bitcoin-specific weakness coincides with deeper structural concerns plaguing the broader decentralised finance ecosystem. Ethereum’s Total Value Locked has contracted by approximately US$43 billion since its January peak, according to Yahoo Finance data. This massive capital depletion locked into DeFi protocols signals waning confidence in the yield-generating opportunities that once attracted billions to the space.

Compounding these concerns, news that six core researchers departed the Ethereum Foundation has raised legitimate questions about leadership stability and the pace of innovation at the world’s second-largest blockchain network. These developments suggest that the weakness in cryptocurrency extends beyond simple price volatility to fundamental questions about ecosystem health and development momentum.

The total cryptocurrency market capitalisation declined to US$2.55 trillion, with Bitcoin’s 24-hour price movement tracking the broader market’s decline closely. This correlation indicates a beta-driven, risk-off environment rather than weakness specific to any particular digital asset. The Fear and Greed Index reading of 39, firmly in fear territory, reflects the anxious sentiment pervading cryptocurrency markets. Investors appear to be treating Bitcoin and other digital assets as what they truly are: high-beta risk assets that get sold aggressively when broader market conditions deteriorate.

Traditional equity markets provided no sanctuary for investors seeking stability. The S&P 500 Index closed at 7,353.61, down 49.44 points or 0.67 per cent. The technology-heavy Nasdaq Composite fared worse, falling 220.02 points to 25,870.71, representing a 0.84 per cent decline. The Dow Jones Industrial Average dropped 322.24 points to 49,363.88, a 0.65 per cent loss, while the small-cap Russell 2000 Index suffered the steepest percentage decline at 1.01 per cent, falling 27.38 points to 2,747.07. These losses marked the third consecutive session of declines for major United States benchmarks, with Asian stocks extending their losing streak to four days. The major indices logged their sharpest three-day cumulative declines since late March, signalling intensified selling pressure across asset classes.

The root cause of this broad-based selloff traces directly to the bond market, where a brutal rout has pushed Treasury yields to multi-decade highs. The 30-year United States Treasury yield settled at 5.18 per cent, its highest level since July 2007. The 10-year Treasury yield climbed to 4.67 per cent. These rising risk-free rates have compressed the equity risk premium, making high-growth sectors like technology and cryptocurrencies significantly less attractive. When investors can earn over five per cent with virtually no risk from long-dated government bonds, the calculus for holding speculative assets with uncertain cash flows changes dramatically.

Inflation anxieties continue to simmer, exacerbated by energy prices that refuse to retreat. Global oil prices remain stubbornly above US$110 per barrel despite temporary pullbacks following political headlines. This persistent elevation in energy costs functions as a tax on corporate margins and consumer demand, reinforcing fears of systemic producer price inflation.

The situation grew more tense after United States President Donald Trump announced the postponement of planned military strikes against Iran in favour of continued negotiations. With no definitive resolution to the Middle East conflict, markets remain highly reactive to risks surrounding energy flows through the Strait of Hormuz, where any disruption could send oil prices even higher.

Geopolitical volatility extends beyond the Middle East. In Asia-Pacific markets, broad declines swept across regional indices. South Korea’s KOSPI dropped 3.25 per cent, weighed down severely by memory chip and microprocessor hardware exporters. Japan’s Nikkei 225 fell 0.44 per cent as a higher GDP deflator of 3.4 per cent intensified domestic inflation fears. The United States dollar index strengthened to a six-week high on safe-haven flows and hawkish Federal Reserve rate expectations, creating additional headwinds for emerging markets and commodity prices.

Corporate developments provided mixed signals amid the broader weakness. Chip stocks pulled back ahead of Nvidia’s market-moving earnings, with additional pressure stemming from indications that China is shifting demand away from Western microprocessors to prioritise domestic technology.

Standard Chartered shares fell 2.2 per cent following an announcement to eliminate over 7,800 positions globally, with the bank directly citing a structural shift toward generative AI and automation workflows. In a rare bright spot, Macy’s shares jumped four per cent on news that Warren Buffett’s Berkshire Hathaway initiated a fresh equity position in the retail chain, suggesting that value opportunities still attract patient capital even in turbulent times.

These factors create a challenging environment for risk assets like Bitcoin. Rising bond yields, persistent inflation, geopolitical tensions, and equity market weakness form a perfect storm that drives investors toward safety and away from speculation. Smart money understands that market cycles test conviction, and those who maintain discipline during periods of fear often position themselves for outsized returns when sentiment eventually shifts.

 
Source:
 

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com
j j j

PPI day warning: Bitcoin faces make-or-break moment as US$79,900 level hangs in balance

PPI day warning: Bitcoin faces make-or-break moment as US$79,900 level hangs in balance

Bitcoin slipped 1.02 per cent to US$80,700.70 over the past 24 hours, underperforming a broadly flat global equity market amid renewed macroeconomic anxiety. The cryptocurrency’s decline reflects a confluence of sticky inflation data, hawkish Federal Reserve expectations, and escalating geopolitical tensions that have pushed traders toward safer assets. With Bitcoin showing a 76 per cent correlation to the S&P 500, this move appears fundamentally rates-driven rather than crypto-specific, signalling that digital assets remain tethered to traditional monetary policy expectations.

The primary catalyst is hotter-than-expected US inflation data released this week. The April Consumer Price Index print came in at 3.8 per cent year-over-year, exceeding the 3.7 per cent consensus forecast, while core CPI landed at 2.8 per cent. This seemingly small miss has profound implications for market participants who had priced in potential rate cuts later this year.

Instead, traders now face the possibility of prolonged periods of elevated interest rates, or even a rate hike, a scenario that drains liquidity from speculative assets like Bitcoin. The potential appointment of Kevin Warsh, considered a hawkish nominee, as Federal Reserve Chair adds another layer of concern about a higher-for-longer interest rate environment.

Global equity markets reflected this anxiety with mixed but generally negative performance. The S&P 500 slipped 0.16 per cent to 7,400.96, while the technology-heavy Nasdaq Composite led declines with a 0.71 per cent drop to 26,088.20. The Dow Jones Industrial Average bucked the trend, edging up 0.11 per cent to 49,760.56, supported by healthcare stocks like Humana, which surged 7.7 per cent following a bullish price target upgrade.

Technology stocks bore the brunt of the selloff, with Qualcomm plunging 11 per cent and Micron falling 3.6 per cent as a massive monthly semiconductor rally paused. Asian markets showed similar strain, with the Shanghai Composite retreating 0.25 per cent to 4,214.00 on higher energy costs and local economic caution, though the Straits Times Index managed a 0.64 per cent gain to 4,977.58 in early trade on May 13, supported by regional gains and local bank strength.

Geopolitical tensions added pressure when comments from President Trump suggested the US-Iran ceasefire remains fragile. This injected immediate market anxiety and triggered a wave of long liquidations, wiping out over US$52 million in Bitcoin positions in 24 hours. The instability pushed investors toward the dollar, with the US Dollar Index strengthening by 0.305 points to reach 98.26.

Energy markets reacted sharply to the geopolitical strain and continued closure concerns around the Strait of Hormuz. West Texas Intermediate futures jumped over 9.7 per cent to settle at US$95.73 per barrel, while Brent futures surged 9.2 per cent to cross the psychological barrier of US$100 per barrel at US$100.46. Higher energy costs feed back into inflation concerns, creating a cycle that further pressures risk assets.

The bond market sent clear signals about shifting expectations. The benchmark US 10-year Treasury yield rose to 4.43 per cent as investors repriced the probability of future rate cuts. This yield movement directly impacts Bitcoin and other risk assets by increasing the opportunity cost of holding non-yielding investments. Even traditional safe havens like gold struggled, sliding US$14.90 per ounce to US$4,713.80, while silver dropped slightly to US$85.52 per ounce, suggesting that the dollar’s strength overwhelmed traditional flight-to-safety flows.

From a technical perspective, Bitcoin faces a critical juncture. The cryptocurrency has encountered resistance at US$82,000 multiple times and now tests immediate support at the psychological US$80,000 level and the 23.6 per cent Fibonacci retracement at US$79,912. The market structure remains fragile but not broken, with Bitcoin holding above its multi-week bullish trendline.

A break below the US$79,000 support could trigger a drop toward the 38.2 per cent Fibonacci level near US$78,130. The key trigger for the next major move is the Producer Price Index report, which will confirm whether inflation pressures persist at the wholesale level. A hot PPI print could break support and confirm bearish momentum, while a cooler reading might allow Bitcoin to stabilise and potentially reclaim the US$82,000 resistance level.

The current market dynamics reveal that Bitcoin remains highly sensitive to macroeconomic narratives despite its growing institutional adoption through exchange-traded funds. While long-term structural demand from ETFs provides a fundamental floor, short-term sentiment remains cautious and reactive to traditional financial indicators.

The 76 per cent correlation with the S&P 500 underscores that Bitcoin has not yet decoupled from traditional risk assets during periods of monetary policy uncertainty. Traders now watch whether Bitcoin can defend the US$79,900 to US$80,000 support zone following the PPI data release, or whether this marks the beginning of another leg down in a broader risk-off environment driven by inflation fears and geopolitical instability.

Bitcoin’s near-term trajectory hinges on the interplay between macro data, geopolitical developments, and technical levels. The path forward requires careful navigation of both traditional macro indicators and crypto-specific technical levels, with liquidity conditions and leverage ratios playing outsized roles in amplifying moves in either direction.

 

Source: https://e27.co/ppi-day-warning-bitcoin-faces-make-or-break-moment-as-us79900-level-hangs-in-balance-20260513/

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com
j j j

Bitcoin above US$80K but falling: The pre-CPI shakeout or something worse?

Bitcoin above US$80K but falling: The pre-CPI shakeout or something worse?

Global markets displayed remarkable resilience as major US indices edged to new record highs despite escalating geopolitical tensions in the Middle East. This divergence between risk assets and geopolitical uncertainty reflects a market increasingly driven by artificial-intelligence momentum and institutional positioning rather than by traditional fear indicators.

The S&P 500 inched up 0.19 per cent to a historic close of 7,412.84 while the Nasdaq Composite gained 0.1 per cent to end at 26,274.13, supported by a 2.6 per cent jump in the Philadelphia Semiconductor Index. The Dow Jones Industrial Average added 95 points to close at 49,704.47. These gains underscore how AI-driven enthusiasm in the semiconductor sector continues to outweigh concerns over rising crude oil prices, suggesting investors view technological progress as a more durable growth driver than temporary supply shocks.

Across the Asia-Pacific region, stocks climbed at the open on 12 May. Japan’s Nikkei 225 and Australia’s ASX 200 advanced while South Korea’s KOSPI flirted with the 8,000 mark following a significant rally. Singapore presented a more nuanced picture as the Straits Times Index struggled to recapture the 5,000 level.

The Monetary Authority of Singapore tightened policy to combat imported inflation stemming from energy disruptions, highlighting how regional central banks navigate the complex interplay between growth support and price stability. This policy divergence across Asia reflects the varied exposure different economies have to energy shocks and trade dynamics, with export-oriented markets benefiting from global tech demand while import-dependent jurisdictions grapple with cost pressures.

Commodities markets told a story of competing pressures. Brent crude rose to approximately US$104 per barrel after President Trump rejected Iran’s latest peace proposal, describing the current ceasefire as being on massive life support. Copper prices hit record highs, gaining over 13 per cent year-to-date in 2026, signalling strong expectations for industrial demand despite geopolitical headwinds.

Gold faced pressure, sliding nearly three per cent as the US dollar and Treasury yields trended higher. This commodity mix reflects market pricing of both inflation risks stemming from energy disruptions and confidence in economic activity through industrial metals, while traditional safe havens like gold lose appeal amid rising yields. Investors appear to believe that growth expectations can coexist with elevated energy costs, at least for now.

Investors now focus on two pivotal events. Markets brace for the April Consumer Price Index release on 12 May, expected to show headline inflation rising 3.7 per cent year-over-year. This data point could significantly influence expectations for Federal Reserve policy and, consequently, risk asset valuations. Simultaneously, investors monitor a high-stakes meeting between US President Trump and Chinese President Xi Jinping in Beijing this week.

The Trump-Xi Summit scheduled for 14-15 May creates a cautious atmosphere, as uncertainty over trade tariffs or diplomatic shifts often leads to rotation out of volatile assets into perceived safe havens such as the US Dollar or Treasury bonds. These catalysts represent the classic tension between data-dependent policy and geopolitical diplomacy that defines modern market navigation.

Bitcoin’s price direction, trending downward as of the morning of 12 May 2026, reflects this complex macro backdrop. While institutional demand through ETFs remains a long-term support pillar, several immediate factors exert downward pressure. Geopolitical conflict and rising energy costs trigger inflation fears, suggesting the Federal Reserve may keep interest rates higher for longer, which historically proves risk-off for Bitcoin.

Anticipation of economic data creates a wait-and-see approach as traders de-risk ahead of CPI and retail sales releases, leading to lower liquidity and a slight downward drift. Macro uncertainty surrounding the Trump-Xi Summit further encourages caution among crypto investors who recognise that diplomatic outcomes can rapidly reshape risk appetites across all asset classes.

Beneath Bitcoin’s short-term weakness lies a compelling institutional narrative. Around US$858 million flowed into crypto ETFs last week, with analysts linking part of the surge to growing optimism that the US CLARITY Act will finally deliver regulatory clarity. Crypto ETPs saw about US$858 million in net inflows, led by Bitcoin products with roughly US$706 million, supported by inflows into ETH, SOL, and XRP products.

CoinShares and others attribute improved sentiment partly to progress on the CLARITY Act and a stablecoin yield compromise that could reduce US legal uncertainty for digital assets. These inflows pushed total crypto ETP assets above US$160 billion, with Bitcoin again above US$80,000 and altcoin products seeing meaningful participation alongside BTC.

The CLARITY Act matters because it represents the first comprehensive US crypto market structure law, clarifying CFTC versus SEC jurisdiction, exchange registration, and customer protections. That kind of statutory clarity is exactly what many compliance teams say they need before allocating more broadly beyond Bitcoin.

If institutions believe a real framework is finally coming, they can justify building exposure through ETFs now, even before the law is fully passed. The bill’s passage remains far from guaranteed. Banking groups actively push to weaken or stall the legislation, and prediction markets put the odds of passage in 2026 at only the mid-60s to mid-70 per cent range. The May 14 Senate Banking Committee markup stands as a key risk event that could either validate regulatory optimism or trigger a reversal in sentiment.

From my perspective, the current market dynamics reveal a sophisticated institutional ecosystem maturing around digital assets while traditional macro forces still dominate short-term price action. The US$858 million ETF inflow week reflects a powerful combination of Bitcoin-led momentum and rising confidence that the CLARITY Act could finally resolve US crypto rules.

If the bill advances, it could entrench ETFs as the main institutional gateway into BTC, ETH, SOL, XRP, and peers. If it stalls, some of that newly committed capital may prove more fragile, leaving flows to depend mainly on price cycles rather than lasting regulatory reform. Bitcoin consolidating above the US$80,000 support level suggests the current dip represents a pre-CPI shakeout rather than a structural breakdown, provided key technical levels hold.

The broader lesson for investors centres on distinguishing between transient macro noise and enduring structural shifts. Geopolitical tensions, inflation data, and diplomatic summits will always create volatility, but the steady accumulation of crypto exposure through regulated vehicles signals a deeper reallocation of capital.

 
Source: 
 

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com
j j j