Key facts
- Bitcoin's price has fallen below $60,000, its lowest level since October.
- Cumulative net Bitcoin ETF flows show the recovery from March has been erased by outflows.
- Institutional demand for Bitcoin is no longer providing support.
- Bitcoin is trading significantly below its historical relationship with the Nasdaq 100.
- Investors are treating Bitcoin differently from AI-related tech assets.
- Concerns about inflation and interest rates are contributing to downside pressure.
Bitcoin's price has dropped below $60,000, its lowest point since October, as ETF demand has deteriorated sharply. The recovery in cumulative net Bitcoin ETF flows seen from March to April has been effectively erased by nearly 60,000 BTC of outflows over the last two weeks. This suggests that institutional demand is no longer supporting Bitcoin, with capital flows actively working against it. The current price action is unusual when compared to the Nasdaq 100, as Bitcoin is trading almost three standard deviations below its Nasdaq-implied value, the largest downside deviation in the model's history. While this does not automatically mean Bitcoin is cheap, it indicates investors are treating it differently from assets like technology stocks, which continue to attract capital driven by AI enthusiasm. The macro backdrop, including inflation concerns and growing worries about interest rates, is also contributing to downside pressure on Bitcoin. Until ETF flows stabilize, it is difficult to ascertain if the current correction has concluded.