U.S. spot Bitcoin ETFs recorded their ninth consecutive day of net outflows on Thursday, May 29, 2026, marking the longest withdrawal streak since the products launched in early 2024. Approximately $2.8 billion has been pulled from these funds over this nine-day period, coinciding with a Bitcoin price slip that saw the cryptocurrency fall below $73,000 during Asian trading hours. The exodus comes despite a broader rally in traditional risk assets, including new all-time highs for the S&P 500, signaling a clear divergence between crypto markets and mainstream equities.
The record-breaking streak reached its peak on Wednesday, May 27, when the 11 U.S.-listed spot Bitcoin ETFs lost a combined $733.43 million. This represented the heaviest single-day redemption for the complex since its inception. BlackRock’s iShares Bitcoin Trust (IBIT) led the decline with $527.84 million in net outflows that day, narrowly missing its all-time outflow record of $528.3 million. Fidelity’s FBTC and Grayscale’s GBTC also faced significant withdrawals, shedding $60.30 million and $104.76 million, respectively, during the same session.
Bitcoin underperforms risk assets as institutional demand cools
While global equity markets have touched recent peaks driven by demand for AI and semiconductor exposure, Bitcoin has struggled to keep pace. The cryptocurrency is currently stabilizing near $73,500, roughly 10% below its monthly high of $81,000. Data suggests this stall reflects a shortage of new buyers rather than a surge in sellers. This Bitcoin volatility warning institutional pullback has left the digital asset lagging behind the S&P 500 and South Korea’s Kospi index.
Sentiment among traders has deteriorated as the price correction deepened. The Fear & Greed Index, tracked by Alternative.me, currently reads 25, placing it firmly in “Extreme Fear” territory as of May 27. This is a decline from the previous week when the index sat at 27, which is categorized as regular “Fear.” The sustained negativity reflects growing caution among market participants as the monthly close approaches.
Cost basis hurdles and capital rotation trends
Analysts at K33 Research suggest that Bitcoin’s current price levels are clashing with investor psychological barriers. The average cost basis for ETF holders sits near $83,000, and large outflow days have become more frequent as the price moves toward this holding cost. Vetle Lunde, Head of Research at K33, noted that market participants may be treating these levels as an exit signal. This suggests a pattern where investors look to break even rather than hold through further Bitcoin technical pattern volatility shifts.
However, some experts believe the capital is not leaving the ecosystem entirely but is merely shifting focus. Timothy Misir, Head of Research at BRN, stated that institutional demand has “rotated” rather than disappeared. This theory is supported by the ratio of altcoins to Bitcoin, which is showing relative strength after holding above its 50-week exponential moving average. If this trend continues, it could indicate a broader momentum shift across the altcoin universe even as Bitcoin remains under pressure.
Geopolitical factors and slowing spot demand
The recent market turbulence was exacerbated by U.S. airstrikes on an Iranian military site near the Strait of Hormuz, which reignited conflict and accelerated the drop in Bitcoin prices. While news of potential de-escalation in U.S.-Iran negotiations has since lifted sentiment for traditional risk assets by reducing pressure on oil prices, Bitcoin’s recovery has been muted. This suggests that the current weakness is crypto-specific and tied to internal market dynamics rather than broader global macro shifts.
Glassnode analysis indicates that spot demand is currently too weak to sustain a move back above the $78,000 level. Furthermore, CryptoQuant reported that while long-term holder supply reached a record 15.8 million BTC, this may be a “hollow” record reflecting slowing market turnover rather than high conviction. A significant portion of this total — approximately 900,000 BTC — involves Coinbase reserves that simply crossed the 155-day threshold by remaining inactive.
Market projections for the May month-end close
Traders on the prediction platform Polymarket are currently pricing in a high probability that Bitcoin will end May between $72,000 and $76,000. The likelihood of the price dipping to $72,000 by May 31 stands at 47%. With realized profit/loss ratios sitting at 1.56, the market currently lacks the strength typical of a robust bull cycle. Future price action may depend on whether the CFTC Michael Gillick crypto market oversight claim can offer enough regulatory clarity to entice institutional buyers back into the fold.