Bitcoin slipped below the key $80,000 level after U.S. spot Bitcoin ETFs saw their biggest single-day outflows in four months.
According to SoSoValue data, the 12 U.S.-listed spot Bitcoin ETFs recorded about $635.23 million in net outflows on May 13. This marked the largest daily withdrawal since January and showed a sharp drop in institutional demand for Bitcoin exposure.
The sell-off came as hotter-than-expected U.S. inflation data weakened risk appetite across crypto and broader financial markets.
BlackRock, Fidelity, and Ark Lead ETF Outflows
BlackRock’s IBIT saw the largest outflow, with about $284.69 million leaving the fund.
Fidelity’s FBTC followed with $133.22 million in outflows, while Ark 21Shares’ ARKB recorded $177.10 million in withdrawals. Bitwise’s BITB also saw around $35.40 million leave the fund.
None of the remaining U.S. spot Bitcoin ETFs recorded inflows on the day. This showed that the weakness was not limited to one product but spread across the broader ETF market.
Spot Ethereum ETFs also remained under pressure, posting more than $36.3 million in net outflows on the same day. Like Bitcoin ETFs, no U.S.-listed Ethereum ETF recorded positive inflows.
Inflation Data Pressures Crypto Market
Bitcoin’s decline accelerated after the U.S. Producer Price Index rose 6% year-over-year, coming in above market expectations.
The stronger inflation reading raised concerns that the Federal Reserve may keep interest rates higher for longer. This reduced hopes for near-term rate cuts and pushed investors away from riskier assets such as cryptocurrencies.
Higher interest rates usually reduce market liquidity. They can also make safer fixed-income assets more attractive compared with volatile markets like Bitcoin and altcoins.
Bitcoin Struggles After Recent Recovery
The latest drop followed a strong recovery phase earlier in April, when spot Bitcoin ETFs attracted nearly $2 billion in net inflows despite market volatility.
Those inflows helped Bitcoin recover above the $80,000 region earlier this month. However, the latest ETF withdrawals suggest that institutional demand may be cooling again.
Bitcoin fell from this week’s high near $82,300 to an intraday low around $79,600, before stabilizing near $79,800 at press time.
Oil Prices Add to Inflation Worries
Broader macroeconomic pressure also weighed on sentiment. WTI crude futures stayed above $101 per barrel after the U.S. increased pressure on Iran through fresh sanctions linked to Iranian oil sales to China.
Higher oil prices can add more pressure to inflation, making it harder for central banks to move toward lower interest rates.
For crypto traders, this creates a difficult environment. Bitcoin often performs better when liquidity improves and investors feel comfortable taking more risk. Persistent inflation and higher rates can slow that momentum.
What Comes Next for Bitcoin?
Bitcoin now needs to reclaim the $80,000 level to ease short-term bearish pressure. A move back above this zone could help bulls regain confidence and push toward the next major resistance near $85,000.
However, if Bitcoin fails to hold current levels, sellers could attempt to drive the price toward the mid-$70,000 range.
For now, ETF flows remain one of the most important signals to watch. If outflows continue, Bitcoin may struggle to recover quickly. But if institutional demand returns, the market could regain support above the $80,000 region.
