Bitcoin's 15% drop, despite positive ETF inflows last week, could stem from several factors. While ETF inflows suggest institutional buying, broader market dynamics may outweigh this. Selling pressure from long-term holders or institutions cashing out profits could counteract ETF demand. Macroeconomic shifts, like rising U.S. Treasury yields or a hawkish Federal Reserve stance, might have triggered risk-off sentiment, spurring panic selling. Leveraged position liquidations in the futures market could also amplify the decline. Additionally, weaker spot demand or arbitrage strategies (e.g., hedge funds buying ETFs while shorting futures) might mute ETF inflow impacts. Posts on X highlight ETF outflows and stock market weakness as potential contributors. Despite $36.24B in historical ETF inflows, these forces likely overwhelmed last week's positive trend, driving Bitcoin’s sharp correction.
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