Bitcoin fell below $73,000 after spot ETFs recorded $733 million in outflows led by BlackRock’s IBIT.
Bitcoin (BTC) dropped below $73,000 in early Thursday trading as US spot Bitcoin exchange-traded funds recorded their largest single-day net outflows since late January, compounding a broader market decline driven by institutional repositioning and escalating geopolitical uncertainty. The world's largest cryptocurrency slipped 3.6% over 24 hours to $72,842.
Ethereum (ETH) fell 4.8% to $1,974, while XRP and Solana (SOL) each declined approximately 3.5% to 3.6% over the same period. Asian equity markets opened lower on Thursday, with Hong Kong's Hang Seng Index falling 1.9% and Japan's Nikkei 225 dropping 1.25%, as geopolitical tensions kept risk appetite subdued across global markets.
US spot Bitcoin ETFs posted $733.4 million in net outflows on Wednesday, their steepest daily redemptions since Jan. 29, according to SoSoValue data. BlackRock's IBIT recorded a net outflow of $527.8 million, its second-largest single-day outflow since the fund's inception. Grayscale's GBTC followed with $104.8 million in outflows, alongside negative flows from funds managed by Fidelity, Bitwise, and Ark & 21Shares. Morgan Stanley's MSBT was the only fund to record positive flows, attracting $4.3 million.
Bloomberg Senior ETF Analyst Eric Balchunas flagged on Tuesday that a bulk trade of 29.2 million IBIT shares worth $1.3 billion had taken place the previous day, pushing total Bitcoin ETF volume to $4.4 billion, the highest since April 17. Dominick John, analyst at Zeus Research, told The Block that Wednesday's IBIT outflows were partly a consequence of the unwind of basis trades linked to that large block trade, combined with broader institutional de-risking.
Peter Chung, head of research at Presto Research, described Bitcoin's behavior since mid-May as a "peculiar trading pattern." After hovering above $80,000 earlier in the month, BTC drifted lower for roughly two weeks, underperforming risk assets including the S&P 500 and Nasdaq, Chung told The Block. He said the weakness appeared largely driven by spot Bitcoin ETF outflows, with weekly redemptions reaching levels last seen during the October 2025 and February 2026 drawdowns.
John attributed the broader market decline to capital rotating into traditional finance equities and heavy derivatives liquidations that pushed prices lower once key BTC and ETH support levels broke. "Broader macro and geopolitical uncertainty also kept traders defensive, limiting dip-buying demand," he told The Block.
Nick Ruck, director of LVRG Research, said the outflows reflected a risk-off move tied to profit-taking after recent highs, rising Treasury yields, and macro caution. He added that traders are watching ETF flow momentum and the $70,000 support level, warning that sustained outflows "could signal further institutional repositioning away from crypto."
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