Bitcoin falls as ETF outflows and rising US Treasury yields weigh on prices

Bitcoin came under pressure below $84,000 on Thursday after failing to close above the $85,000 resistance zone in the previous session, amid early signs of weakening institutional demand, alongside rising US Treasury yields and a stronger dollar.

US spot Bitcoin exchange-traded funds recorded net outflows of $148.69 million on Wednesday, ending a nine-day streak of inflows. The cryptocurrency’s bullish momentum also weakened as Treasury yields and the dollar climbed, keeping investor sentiment toward risk assets cautious.

Institutional demand weakens

Data from SoSoValue showed that spot Bitcoin ETFs recorded net outflows of $148.69 million on Wednesday, bringing a nine-day streak of inflows to an end.

ETF flows had begun to gradually weaken since September 21 before turning negative on Wednesday, signaling that institutional buying momentum may be losing some strength.

If outflows persist and accelerate over the coming days, Bitcoin could face a deeper correction.

Higher yields and stronger dollar limit Bitcoin gains

Bitcoin failed twice this week, on Monday and Wednesday, to reclaim the $85,000 resistance level, leaving the cryptocurrency trading below that threshold.

The 5-year US Treasury yield climbed above 5%, while the 10-year yield exceeded 5.2%, with both reaching their highest levels in around 19 years and remaining elevated.