Bitcoin’s price hovered near $80,000 after failing to surpass $82,500, pressured by notable outflows from US-listed spot Bitcoin ETFs. On Thursday, these ETFs recorded net withdrawals of $268 million, ending a brief four-day inflow streak and triggering unease among traders about the cryptocurrency’s immediate momentum.
Adding to the market nervousness, over $270 million in leveraged bullish Bitcoin futures were liquidated within a single day. This sharp unwind forced investors to reconsider whether Bitcoin’s rally is losing steam or if a deeper bearish phase may be developing, despite strong performances in traditional equity markets. The S&P 500 reached an all-time high on Friday, and the Russell 2000 small-cap index remained close to its record peak, indicating that risk appetite persists outside crypto.
Retail interest in Bitcoin also showed signs of weakening. Major crypto trading platforms Coinbase and Robinhood reported disappointing revenue drops in the first quarter of 2025, with Coinbase’s revenue down 31% and Robinhood’s crypto income falling by 47%. These declines point to diminished retail engagement, raising questions about the sustainability of Bitcoin’s bull run. On the institutional side, high-volume traders on Binance cut long positions on Bitcoin to their lowest levels in over four weeks. Meanwhile, whales and market makers at OKX initially increased bullish bets as Bitcoin briefly surpassed $80,000 but quickly scaled back their exposure, pushing the top traders’ long-to-short ratio down to 0.27—far below the 1.20 ratio seen just ten days earlier.
Despite these bearish signals, two overarching macroeconomic trends could support Bitcoin’s price in the near term. The US dollar has lost strength against other major currencies over the past two months, diminishing the appeal of US Treasuries, especially amid elevated oil prices. Rising US government debt also shifts investor focus toward scarce assets as potential hedges, and Bitcoin typically benefits from a weaker dollar environment.
Market watchers are also factoring in expectations that a US Strategic Bitcoin Reserve might begin accumulating BTC. This anticipation is heightened by speculation that Kevin Warsh could replace Jerome Powell as Federal Reserve chair. Warsh has previously disclosed significant holdings in cryptocurrency and has expressed favorable views about Bitcoin, which could influence future Federal Reserve policies to be more crypto-friendly.