Bitcoin hovered near the $80,000 mark early Saturday, stabilizing after two consecutive days of net outflows from U.S.-listed spot bitcoin exchange-traded funds (ETFs) that have tested the sustainability of the cryptocurrency's recent rally.
According to market data, the leading digital asset traded between $79,563 and $80,602, with a current price around $80,391. The price action kept Bitcoin above a key psychological level that has become a barometer for institutional interest versus profit-taking following a sharp upward move.
The outflows were significant: on May 7, U.S. spot bitcoin ETFs saw net outflows of $268.5 million, followed by another $145.7 million on May 8, according to data from Farside Investors. On Friday, Fidelity's FBTC led withdrawals with $97.6 million, while BlackRock's IBIT saw $27.2 million in outflows.
Bitcoin briefly climbed above $82,000 on Friday before slipping back under $80,000. Riya Sehgal, a research analyst at Delta Exchange, noted that traders began cashing out profits after the rally, with ETF outflows weighing on sentiment and prompting a more cautious tone.
The macro backdrop added to the complexity. U.S. nonfarm payrolls increased by 115,000 in April, beating the 62,000 forecast from economists surveyed by Reuters, while the unemployment rate held steady at 4.3%, according to the Labor Department. Stronger-than-expected jobs data eased recession fears but also dimmed hopes for imminent Federal Reserve rate cuts.
For bitcoin and other non-yielding assets, the prospect of higher-for-longer interest rates makes them less attractive compared to cash, Treasury bills, and income-generating assets. Peter Cardillo, chief market economist at Spartan Capital Securities, told Reuters that the jobs report suggests the Fed must concentrate on inflation. Tim Holland, chief investment officer at Orion Advisor Solutions, called the data evidence that the U.S. economy faces little risk of recession.
Ether rose about 1.4% to near $2,316, while Solana posted a stronger gain of nearly 6% to $93.73, signaling lingering risk appetite across major tokens despite the slowdown in bitcoin ETF inflows.
In a significant development for crypto access, Morgan Stanley is reportedly rolling out spot crypto trading for E*Trade users, starting with bitcoin, ether, and solana. That move pulls a heavyweight Wall Street name further into retail crypto activity, according to the Financial Times.
Meanwhile, a Swiss push to get the Swiss National Bank to hold bitcoin in its reserves has faltered. Supporters failed to collect enough signatures for a referendum, according to Reuters. The SNB remains opposed to adding crypto, citing volatility and liquidity risks.
Should ETF outflows persist beyond two days, bitcoin could face further downside risk, especially if optimism for U.S. rate cuts continues to fade. A drop below $80,000 could trigger another round of short-term selling by leveraged traders. For now, the market is pausing, not cracking.
