Key Takeaways:
- Bitcoin fell 3.8% to $66,600, its lowest level since early April
- 10xResearch attributes the decline to ETF selling after hot April inflation data
- Wednesday's CPI report will determine whether Bitcoin bounces or extends losses
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Bitcoin drops to $66,600 as hot inflation data fuels ETF outflows
Bitcoin's slide to a two-month low was driven by ETF selling after hotter-than-expected April inflation data, not by company-specific factors, according to 10xResearch.
Bitcoin fell 3.8% to $66,600, its weakest level since early April, as red-hot inflation data triggered ETF outflows and raised Fed rate hike bets.
"The main driver behind bitcoin's weakness was ETF selling after red-hot April U.S. inflation data," Markus Thielen, founder of 10xResearch, said.
The selloff erased the April-May rally and flipped the $72,000 to $74,000 zone into resistance, with Bitcoin now testing critical support near $62,000, CoinGecko data show. The move coincided with a broader risk-off shift as investors sold stocks, bonds and gold after a strong jobs report further raised the odds of Federal Reserve interest rate hikes.
The bounce may hinge on Wednesday's CPI data, Thielen said. A cooler print could trigger a sharp relief rally, while a confirmation of persistent inflation would likely deepen ETF outflows and keep Bitcoin under pressure.
The selloff pushed Bitcoin to its lowest level since early April, with the token down more than 10% from its April peak above $74,000. Open interest across Bitcoin futures fell as funding rates turned negative, signaling reduced appetite for leveraged long positions, Coinglass data show. Spot Bitcoin ETFs tracked by The Block recorded net outflows of more than $300 million in the week through June 5, the largest weekly withdrawal since March.
This article is for informational purposes only and does not constitute investment advice.
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