U.S. April PPI Surpasses Expectations Alongside ETF Outflows Putting Pressure on Bitcoin

BlockBeats News, May 14th. Over the past 5 trading days, the US spot Bitcoin ETF has seen a cumulative net outflow of approximately $1.25 billion, with a single-day net outflow of $630.4 million on May 13th, marking the largest daily outflow in the recent period. Meanwhile, Bitcoin dropped below the $79,000 mark, indicating that fund outflows and macro pressures are exerting simultaneous pressure on the market. In terms of fund structure, the outflows are mainly concentrated in IBIT, FBTC, and ARKB. Among them, IBIT has seen a cumulative net outflow of around $550 million over the past 5 trading days, while ARKB has seen a net outflow of approximately $300 million.

On a macro level, US April PPI data came in significantly higher than expected, showing inflation pressure stronger than anticipated. The market believes that it is proving to be even harder for the Fed to justify any rate cuts this year. Previously, the market was under pressure due to the higher-than-expected rebound in the US April CPI, with US bond yields staying high, further dampening risk appetite for risk assets.

The fund outflows indicate that some institutions are choosing to reduce their risk exposure amidst macro uncertainty, high US bond yields, and a cooling Fed rate cut expectation backdrop. The market is currently focused on the Fed's future policy path and the progress of the "CLARITY Act." Without new catalysts, BTC may continue to maintain a range-bound pattern in the short term.