Bitcoin ETFs See $463M Outflows as Oil Tops $100: Markus Levin on What’s Next - iShares Bitcoin Trust (NA

Spot Bitcoin ETFs are facing a tougher test as the renewed U.S.-Iran conflict pushes oil above $100 a barrel and Treasury yields toward 5%, creating a more attractive alternative for institutional capital.

The funds recorded roughly $463 million in net outflows last week, ending three consecutive weeks of inflows. But Markus Levin, co-founder of dePIN blockvhain XYO, said the reversal looks more like a macro-driven risk reduction than a wholesale retreat from Bitcoin.

"The flow reversal came as oil moved above $100, Treasury yields approached 5%, and expectations for Fed tightening jumped," Levin told Benzinga. "That looks more like investors reducing risk in response to a broader macro shock than simply taking profits after Bitcoin’s rally."

5% Treasury Yield Raises the Stakes

The key pressure point for Bitcoin may be the bond market rather than the cryptocurrency itself.

The 10-year Treasury yield crossed 5% on Tuesday, its highest level since 2023, increasing the opportunity cost of holding a non-yielding asset such as Bitcoin.

"5% on the 10-year Treasury is already an important threshold," Levin said. "If yields remain above 5% while oil stays above $100 and inflation expectations continue rising, Bitcoin faces a much tougher competition for institutional capital."