Big money is fleeing Bitcoin and the Fed isn't helping — short the breakdown
Bitcoin has dropped below $69,000 to its lowest level in two months. Big institutional investors have pulled $3.45 billion out of Bitcoin funds over 11 straight days, and a Fed official just warned that interest rates may need to rise to fight sticky inflation — bad news for risky assets like crypto.
Idea
Institutional money is sprinting out of Bitcoin — 11 straight days of ETF outflows totaling $3.45 billion is not a blip, it's a trend. At the same time, a Federal Reserve official just signaled that interest rates may need to go higher to tame inflation, which historically pressures speculative assets like crypto. Bitcoin has already fallen 36% over the past year, undercutting the whole 'digital gold' story that brought many new investors in. When both the macro backdrop and the big-money flows are pointing the same direction — down — the sell-off usually has further to run.