Bitcoin Drops Below $77,000 as Bond Yields and ETF Outflows Pressure Market

Bitcoin fell to a two-week low, dropping below $77,000 as rising bond yields and significant outflows from exchange-traded funds pressured the cryptocurrency market. The decline triggered over $661 million in liquidations of leveraged trading positions within 24 hours, with the vast majority stemming from bets that prices would rise.

The sell-off marks a reversal from earlier in the month when Bitcoin traded above $82,000. The downturn coincided with a sharp increase in U.S. Treasury yields, with the 10-year yield climbing above 4.5%. Analysts note that higher yields on government debt make non-yielding assets like Bitcoin less attractive to investors. Broader concerns about inflation and elevated oil prices have also contributed to a decline in risk appetite across financial markets.

Institutional demand, a key driver of recent gains, showed signs of weakening. U.S. spot Bitcoin ETFs recorded substantial net outflows last week, with data indicating a withdrawal of over $1 billion. A similar pattern was observed in spot Ethereum ETFs, which also experienced consistent outflows. This shift follows several weeks of strong inflows into these products.