Bitcoin's price has fallen below $60,000, with ETF demand recovery from March and April now fully reversed due to persistent outflows. Institutional capital is working against Bitcoin, which is trading significantly below its Nasdaq-implied value, suggesting investors are treating it differently from AI-driven tech assets.
The reversal of ETF demand and Bitcoin's divergence from tech assets signal a potential shift in institutional investor sentiment, indicating that Bitcoin may no longer be a preferred destination for capital amid broader market concerns.
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.