Bitcoin tumbled below the $73,000 mark on Thursday, with spot ETF outflows hitting $733 million as geopolitical tensions and mounting expectations of a Federal Reserve rate hike rattled markets. The move wiped out gains from earlier in the month and pushed volatility back to levels not seen since late March.
Geopolitical jitters spur selloff
The catalyst wasn't a single headline — it was a grinding accumulation of cross-border strains. Reports out of Eastern Europe and the Middle East weighed on risk assets broadly, and crypto took the brunt. Traders say the mood turned sour early in the session, and the selling accelerated as stop-losses triggered below $75,000. By afternoon, Bitcoin was changing hands around $72,800, down roughly 4% on the day.
ETF outflows accelerate
The $733 million outflow from U.S. spot Bitcoin ETFs is the largest single-day exodus in months. It's a stark reversal from the steady inflows that had characterized most of 2026. The outflows suggest institutional investors are pulling exposure ahead of what they see as a more restrictive monetary environment. No single fund dominated the outflow; it was broad-based across the major issuers.
Rate hike concerns linger
Market bets on a Fed rate hike at the June meeting have ticked up after stronger-than-expected consumer spending data earlier this week. Higher rates would tighten liquidity, a headwind for speculative assets like crypto. The correlation between Bitcoin and tech stocks has remained elevated, and any hawkish signal from the Fed could keep downward pressure on prices. Investors now await the next Fed meeting — and any hints from officials in the days ahead — to gauge whether Bitcoin can find a floor or if the selloff has further to run.
