Bitcoin Hit by Massive ETF Outflows
In conjunction with the adverse sentiment prevailing in global markets due to the recent escalation of tensions between the U.S. and Iran, cryptocurrencies are experiencing a pronounced downturn. The spike in crude oil prices that followed, along with the significant outflow of funds from U.S.-listed Bitcoin Spot ETF products on Wednesday, also impacted crypto market sentiment. Overall cryptocurrency market capitalisation has decreased by nearly 3 percent in the last 24 hours. Market leader Bitcoin experienced a decline, reaching a 24-hour low of $72,650, a threshold not observed since mid-April. U.S.-listed crypto ETF products experienced significant outflows on Wednesday. Bitcoin Spot ETF products experienced outflows exceeding $700 million, while Ethereum Spot ETF products saw outflows nearing $70 million. Markets also processed the most recent inflation data from the U.S. for the month of April. Data released by the U.S. Bureau of Economic Analysis on Thursday morning indicated that the core PCE price index experienced a year-on-year increase of 3.3 percent. The inflation reading rose from 3.2 percent in March, aligning with market expectations. The Fed’s preferred measure of underlying inflation in the U.S. economy, however, remained significantly above the Federal Reserve’s 2 percent target, raising concerns about a potentially hawkish monetary policy response from the Federal Reserve.
The risk aversion stemming from the escalation in geopolitical tensions has led to significant crypto liquidations over the past 24 hours. Recent data indicates that crypto liquidations, which refer to the involuntary closure of a trader’s leveraged position by an exchange or lending protocol due to inadequate funds (margin or collateral) to mitigate potential losses, surged to $918 million from $326 million the previous day. Long positions surged to $860 million, a significant increase from $246 million the previous day, while short positions decreased to $58 million, down from $79 million in the prior period. With the recent escalation dampening prospects for a peace agreement between the U.S. and Iran, sentiment within the cryptocurrency market has been affected. In the context of a widespread market selloff prompted by geopolitical tensions and significant ETF outflows, the total capitalisation of the cryptocurrency market has contracted by 2.8 percent over the last 24 hours, now standing at $2.46 trillion. The 24-hour trading volume has, however, risen by 12 percent to $104 billion. Among the top 100 cryptocurrencies, merely three are experiencing overnight gains exceeding one percent, while a substantial 75 are facing losses surpassing that threshold.
Bitcoin, the largest cryptocurrency, is trading 2.9 percent lower at $73,126.96. The current price stands approximately 42 percent lower than the all-time high of $126,198.07, which was reached on October 7, 2025. The original cryptocurrency has experienced a decline of 5.2 percent over the past week and a significant drop of 16.4 percent on a year-to-date basis. Bitcoin Spot ETF products in the U.S. experienced net outflows amounting to $733 million on Wednesday, marking a significant increase from the $334 million recorded on Tuesday and the $105 million on Friday. iShares Bitcoin Trust ETF topped with massive outflows of $528 million, jumping from $192 million a day earlier. Diverging from the trend, Morgan Stanley Bitcoin Trust recorded inflows of $4.3 million. Bitcoin maintains its position as the 13th largest asset globally by market capitalisation, according to data. It is situated between Meta Platforms, which holds the 12th spot, and Samsung, ranked 14th. Ethereum shed 4.3 percent overnight, trading at $1,982.95. The leading alternate coin is currently trading at a level that is 60 percent below its all-time high of $4,953.73, which was recorded on August 25, 2025. Ethereum Spot ETF products in the U.S. experienced a notable increase in net outflows, escalating to $67 million on Wednesday, up from $35 million on Tuesday and $7 million on Friday. With outflows of $65 million, the iShares Ethereum Trust ETF represented the majority of the total outflows.
Ethereum experienced an overnight decline exceeding 4 percent, resulting in a drop of five positions to the 79th rank in the global asset hierarchy based on market capitalisation. 4th ranked BNB lost 3.3 percent overnight, resulting in a price decrease to $631.49. BNB is currently positioned 54 percent beneath its all-time high of $1,370.55, which was reached on October 13, 2025. 5th ranked XRP, a payments-focused cryptocurrency, lost 2.4 percent overnight and is currently trading at $1.29, around 66 percent below the all-time high of $3.84 touched on January 4, 2018. The price of 7th ranked Solana declined 3.3 percent overnight to $80.84. SOL’s current price stands approximately 72 percent lower than its all-time high of $294.33, which was achieved on January 19, 2025. Solana ETF products in the U.S. experienced net inflows of $0.6 million on Wednesday, contrasting with no inflows recorded on Tuesday. TRON ranked 8th overall experienced a decline of 6.6 percent overnight and is currently trading at $0.3482. The trading price stands at 21 percent below the cryptocurrency’s all-time high of $0.4407, which was recorded on December 4, 2024.
Memecoin Dogecoin regained the 9th rank overall but experienced a decline of 3.7 percent overnight, currently trading at $0.0978. DOGE is currently positioned 87 percent beneath its peak price of $0.7376, which was reached on May 8, 2021. 10th ranked Hyperliquid tumbled 8.6 percent in the past 24 hours. HYPE is currently priced at 56.56, approximately 12 percent lower than its all-time peak of 64.59, which was achieved on May 26, 2026. HYPE has experienced a decline of 2.9 percent over the past week; however, it maintains a substantial year-to-date increase of 122 percent. Hyperliquid ETF products in the U.S. experienced net inflows of $3.4 million on Wednesday, a notable decrease compared to the $20 million recorded on Tuesday. Bitwise Hyperliquid ETF and 21Shares Hyperliquid ETF both experienced inflows of $1.7 million each. Among the top 100 cryptocurrencies, the 15th ranked Stellar achieved overnight gains exceeding 33 percent, while the 58th ranked Worldcoin experienced significant losses, plunging nearly 20 percent overnight.
