Bitcoin ETF Outflows Extend as Hot Inflation Data Hits Markets

Bitcoin ETF outflows — Bitcoin held near $74,000 on Tuesday, failing to join a rebound in traditional stocks as fresh inflation data boosted expectations for higher U.S. interest rates and spot Bitcoin ETFs saw outflows for a fourth consecutive day.

The latest Consumer Price Index (CPI) reading showed inflation remained hotter than anticipated, pushing market-implied odds of a Federal Reserve rate hike to approximately 90%. This macroeconomic pressure contributed to a divergence between crypto and equity markets, with major stock indices recovering while Bitcoin’s price remained range-bound.

Outflows from U.S. spot Bitcoin exchange-traded funds continued, marking the fourth straight day of net withdrawals. This trend coincides with a reported jump in leveraged position liquidations across the crypto market, indicating heightened volatility and risk-off sentiment among traders.

The sustained ETF outflows suggest some institutional or large investors are taking profits or reducing exposure amid the uncertain macro environment. Bitcoin’s price stability near the $74,000 level, despite these headwinds, will be tested as markets continue to digest the implications of persistent inflation on monetary policy.