Bitcoin traded near $78,183 on Saturday, dipping below the psychologically important $80,000 level after a broad risk-off move on Friday. The decline came as U.S. spot bitcoin exchange-traded funds (ETFs) recorded $290.4 million in net outflows on May 15, led by BlackRock's IBIT, which saw $136.2 million exit the fund. From May 11 to May 15, cumulative net outflows from these ETFs approached $1 billion.
The selloff was not confined to cryptocurrencies. Ether fell approximately 2.3% to $2,179.13, while other digital assets such as Solana and XRP also posted losses. According to CoinDesk, the downturn triggered roughly $500 million in long liquidations, as leveraged bullish positions were forcibly closed.
Macro Pressures Drive Risk Aversion
The catalyst for the risk-off move was a sharp rise in U.S. Treasury yields and oil prices. The 10-year Treasury yield surged to 4.599%, its highest level since May 2025, while the 30-year yield climbed to 5.131%. Rising oil prices, fueled by ongoing Middle East supply concerns, stoked inflation fears. “The bond market was starting to price in longer-term inflation expectations,” Mike Sanders, head of fixed income at Madison Investments, told Reuters.
Equity markets also felt the heat. The S&P 500 fell 1.2% on Friday, the Dow Jones Industrial Average dropped 1.1%, and the Nasdaq Composite slid 1.5%, as technology stocks retreated from recent highs. “The market had gotten way ahead of itself,” said Kenny Polcari of Slatestone Wealth.
Regulatory Developments in Focus
On the regulatory front, the U.S. Senate Banking Committee advanced the Clarity Act, a digital-asset market structure bill, to the full Senate. This marks the first time such a bill has cleared committee. The legislation aims to define whether crypto tokens are classified as securities, commodities, or another asset class. However, two Democrats who helped move the bill forward signaled they may not support it in a full Senate vote, leaving its passage uncertain.
Market Outlook
Bitcoin opened the week near its weekend range, with traders eyeing whether it can hold those levels before U.S. ETFs resume trading. The key question is whether Friday's outflows were a one-off reaction to macro factors or the beginning of a larger exodus by institutional investors.
The risk remains that conditions could worsen. If oil prices continue to climb, Treasury yields rise further, and ETF outflows persist, bitcoin could face additional downside pressure even in the absence of negative crypto-specific news. A weaker dollar or a rapid drop in yields could provide relief, but that scenario did not materialize on Friday.
Sean Farrell, head of digital assets strategy at Fundstrat, suggested that traders might consider taking profits after the legislative news but added he was “not rushing to make major adjustments.”
