Bitcoin has been struggling to maintain its upward momentum, according to a recent market review from cryptocurrency exchange Bitfinex. The report highlights that macroeconomic pressures are chipping away at risk appetite, potentially putting more downside pressure on BTC.
Bitcoin started the week around $82,160 but failed to break through a strong resistance zone between $80,000 and $83,000. Over the past week, it lost about 4.6% and began testing below the $77,000 level again. Analysts point to geopolitical tensions and rising oil prices as contributing factors. They say holding near the monthly opening level is critical for any continued recovery.
Institutional Outflows Signal Caution
The pullback isn’t just about price. There was a net outflow of roughly $1 billion from US spot Bitcoin ETFs last week, ending a six-week streak of uninterrupted inflows. Even BlackRock’s IBIT ETF, a popular choice among institutional investors, saw withdrawals. Weakness also appeared in yield-generating products like STRC, suggesting that marginal demand sources in the market are narrowing.
On-chain data paints a similar picture. Monthly capital inflows remain positive at around $2.8 billion, but that’s far below the $10 billion levels seen during strong bull markets. According to Bitfinex, this indicates that institutional investors aren’t confident enough to absorb macroeconomic shocks, even as Bitcoin recovered toward $82,000.
Macroeconomic Headwinds Persist
The US “long-term high interest rate” scenario appears to be strengthening again. April’s CPI data came in at 3.8% year-on-year, showing persistent inflation not just in energy but also in the services sector. Real wage growth turned negative, and long-term US Treasury yields hit recent highs. Markets have started pulling back expectations for interest rate cuts this year.
Disruptions in the Strait of Hormuz have negatively impacted global oil supply, pushing Brent crude above $100 per barrel. Higher energy costs directly affect fuel, transportation, and consumer prices, which dampens appetite for risky assets like Bitcoin.
Regulatory and Institutional Developments
Despite the bearish signals, there are some positive developments in the crypto sector. The US Senate Banking Committee advanced the CLARITY Act, which aims to more clearly define the boundaries of authority between the SEC and the CFTC. Separately, digital asset manager Bitwise launched a spot Hyperliquid ETF with integrated staking rewards, showing continued institutional interest beyond Bitcoin and Ethereum.
However, Bitfinex warns that rising inflation expectations and increasing bond yields could increase pressure on digital asset markets in the short term. Strong outflows from spot Bitcoin ETFs suggest that investors are beginning to reduce exposure to risky assets.
This is not investment advice.
