US spot Bitcoin ETFs recorded $1.72 billion in net outflows last week, marking the largest weekly withdrawal since February 2025. Data from SoSoValue showed that the funds faced selling pressure through almost the entire trading week, with only Thursday posting a modest $3 million net inflow.
BlackRock's IBIT took the largest hit
BlackRock's IBIT accounted for the biggest share of the pullback. The fund lost $1.34 billion over the week, its heaviest weekly outflow since listing in January 2024. The retreat also extended a trend already visible in May, when the spot Bitcoin ETF market as a whole logged $2.43 billion in monthly net outflows.
Strong US jobs data weakened the case for rate cuts
Andri Fauzan Adziima, head of research at a research unit under crypto exchange Bitrue, said the sell-off was driven mainly by macroeconomic developments, especially the latest US employment data. He said the strong nonfarm payrolls report for May 2026 reinforced the view that the labor market remains resilient, which pushed back expectations for near-term Federal Reserve rate cuts and lifted US Treasury yields. In that setup, yield-bearing bonds looked more attractive than Bitcoin, which does not generate income.
Risk-off trading spread beyond crypto
The market move was not limited to digital assets. The report said fading rate-cut expectations and ongoing geopolitical uncertainty fed a broader risk-off mood across global markets, hitting AI-related shares, technology stocks and even gold. In Asia, South Korea's KOSPI dropped 8.29% on Monday, Japan's Nikkei 225 fell 3.85%, and Taiwan's weighted index lost 3.48%.
Bitcoin rebounded above $64,000 over the weekend
After falling 15% during the prior week, Bitcoin recovered part of the loss over the weekend and briefly moved back above $64,000. It later held near $63,000. Adziima said fund flows may stay under pressure in early June, but he expects conditions to stabilize later in the month if macro stress eases and seasonal patterns offer support. The report added that analysts broadly viewed the move in Bitcoin as a classic oversold bounce.