Bitcoin drops to $74,300 as spot ETFs see $2.26B outflow in two weeks

Bitcoin tumbled to $74,305 early Saturday, its lowest since April 20, as a sustained sell-off in U.S.-listed spot Bitcoin ETFs accelerated. The world's largest cryptocurrency was down over 3% in the past 24 hours, trading approximately 10% below its recent high of $82,500 reached on May 6.

The price drop coincides with a sharp outflow from spot Bitcoin ETFs. Investors pulled $1.26 billion from these funds this week alone, contributing to a two-week total of $2.26 billion. This marks the largest two-week withdrawal on record, signaling waning institutional appetite. The selling pressure comes as U.S. Treasury yields rise, reducing the appeal of risk assets like bitcoin. Higher yields on government bonds offer a safer alternative, drawing capital away from cryptocurrencies.

For crypto traders, the correlation between bitcoin and traditional risk assets remains a key driver. Rising yields in developed markets, particularly in the U.S., are tightening financial conditions and dampening speculative demand. Bitcoin's price action reflects this shift, with the asset struggling to hold key support levels. NowPrice's real-time crypto quotes show BTC currently near $75,300, with traders watching for further downside if ETF outflows persist. On-chain data also shows exchange reserves declining, which could limit selling pressure if demand returns.

Looking ahead, the market will focus on upcoming U.S. economic data, including jobs reports and inflation readings, which could influence Federal Reserve policy. A more hawkish Fed stance would likely push yields higher, adding further headwinds for bitcoin. Conversely, any signs of easing could spark a recovery. Traders should monitor ETF flow data daily, as continued outflows may signal deeper institutional caution. The $74,000 level is a critical support; a break below could open the door to the $70,000 area.