Bitcoin Drops as Treasury Yields Surge, ETF Outflows Hit $1B
Bitcoin fell to a three-week low over the weekend as a surge in U.S. Treasury yields triggered massive ETF outflows and over $670 million in crypto liquidations. The 10-year Treasury yield reached 4.63% on Sunday night, a 16-month high, up 70 basis points since the Iran War began. This yield level is four basis points above the level that prompted President Trump's 90-day tariff pause in April 2025. With mortgage rates nearing 7% and odds of a 2026 rate cut collapsing to 2%, the bond market stress is being transmitted to crypto through institutional channels. U.S. spot Bitcoin ETFs recorded $1 billion in net outflows for the week ending May 15, the largest since late January, according to SoSoValue. Bitcoin currently trades around $76,770, down 2% in 24 hours. Analysts highlight $77,000 as a critical support level; a break below with elevated open interest could lead to a retest of $70,000. The CLARITY Act advancing in the Senate failed to boost Bitcoin, and the muted recovery despite S&P 500 gains signals weak organic demand. The next 48 hours of ETF flow data will be crucial.
Key facts
- 10-year Treasury yield hits 4.63%, a 16-month high, up 70 bps since Iran War.
- Spot Bitcoin ETFs see $1B weekly outflow, largest since late January.
- Bitcoin falls to three-week low near $76,770, over $670M in liquidations.
- $77,000 is key support; break below could trigger retest of $70,000.
- CLARITY Act progress fails to boost Bitcoin; muted recovery signals weak demand.