Bitcoin hit by worst outflow this year... $78,000 defense line 'shaken'

▲ Bitcoin (BTC), cryptocurrency decline/AI generated image

Bitcoin (BTC) investment products have experienced their worst weekly capital outflow this year, entering a risky period where weakening technical support and macroeconomic pressures converge simultaneously.

According to crypto-specialized media NewsBTC on May 26 (local time), digital asset investment products saw an outflow of $1.47 billion over the course of one week. This marks the second consecutive week of outflows and the third largest weekly outflow in 2026. NewsBTC reported that geopolitical risks related to Iran, rising bond yields, a weak stock market, and the weakening of the technical support structure that had kept Bitcoin around $80,000 all contributed simultaneously.

Bitcoin was at the center of this outflow. According to CoinShares' Digital Asset Fund Flows report, Bitcoin investment products saw an outflow of $1.315 billion. This is the largest single-week Bitcoin outflow since the start of 2026, and the year-to-date cumulative inflow decreased from $3.9 billion the previous week to $2.6 billion. The cumulative inflow, which was $4.9 billion two weeks ago, has almost halved in just two weeks.

Ethereum (ETH) investment products also saw an outflow of $222.8 million, and blockchain equity ETFs experienced a total outflow of $133 million. Regionally, the United States accounted for most of the global outflow, recording $1.425 billion in outflows. Switzerland recorded $16.2 million in outflows, Canada $12.5 million, and Hong Kong $12.2 million, while Germany showed a nearly flat trend.

QCP Capital viewed this price trend as a result of the simultaneous convergence of the expiry of technical support structures and a deteriorating macroeconomic environment. Specifically, the dealer long gamma in iBIT options suppressed Bitcoin volatility for most of May and supported the price around $80,000, but with the expiry of over $4 billion in iBIT options last Friday, that support disappeared, according to their analysis. Subsequently, Bitcoin dropped below $78,000.

The macroeconomic environment was also unfavorable. The US 10-year Treasury yield remained at a cycle high of 4.62%, the 30-year Treasury yield at 5.14%, and the dollar-yen exchange rate rose from 158 to 159, approaching the 160 mark. QCP assessed that the market is pricing in a 50% to 60% chance of a 25 basis point Fed rate hike by January. However, XRP recorded an inflow of $31.8 million, Solana (SOL) $7.7 million, Near Protocol (NEAR) $9 million, and Sui (SUI) $2.9 million.

NewsBTC reported that this week's Federal Open Market Committee minutes, Nvidia earnings, and flash Purchasing Managers' Index announcements are variables that could change market direction. As of the time of reporting, Bitcoin is trading around $82,000, attempting to stabilize above the $78,000 level that broke last week. With $2.54 billion in outflows for two consecutive weeks occurring at a time of weakening technical support and increasing macroeconomic pressure, institutional investor confidence is being tested.

*Disclaimer: This article is for investment reference only and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*