Bitcoin's recent rally is showing serious fault lines as two converging signals flash red simultaneously: record ETF outflows and a market-implied probability of a rate hike now sitting at 60%. Analysts are framing this not as a routine pullback but as evidence that the structural bid underpinning the move higher is eroding.
ETF outflows at record levels matter because they represent institutional money — the same cohort that drove the post-approval inflow narrative — now actively reducing exposure. When that class of buyer becomes a seller, the retail bid rarely fills the gap cleanly.
A 60% rate-hike probability compounds the pressure. Risk assets broadly re-price when the Fed's path shifts hawkish, and Bitcoin, despite its maturing institutional profile, has not decoupled from that dynamic. Analysts warn that until both signals reverse, the path of least resistance remains lower.
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