Bitcoin Spot ETFs Log Fifth Straight Week of Outflows as Institutions Rotate to Altcoins

Bitcoin bounces at $61K as CLARITY Act clears Senate hurdle

Bitcoin

Zeng's thesis challenges the dominant market narrative that the Fed must hike aggressively, directly impacting real yields which are the primary driver of BTC's 30% underperformance versus risk assets since May. If validated, this could fracture the 'higher for longer' consensus that's crushed altcoins (evidenced by 7d -1.88% decline despite BTC's modest 24h gain).

Allianz Fixed Income CIO Jenny Zeng warned that bond markets may be overpricing inflation expectations and noted Fed hikes remain possible but could be mitigated by US energy independence and softening tariff impacts.

Allianz CIO Warns Bond Markets Overprice Inflation, Opening Door for Bitcoin ETF Rotation

Allianz's bond warning signals quiet institutional rotation into Bitcoin ETFs before retail notices the macro pivot

The market is currently prioritizing macro drivers like Fed policy over isolated geopolitical events, but this incident subtly reinforces the 'fearful_market' signal. With 72% of institutional capital sidelined due to volatility (per JPMorgan), such events become psychological triggers that could extend the current 4.04% 7-day decline if perceived as part of a pattern of global instability.

The UK summoned Israel's top diplomat in Britain to express condemnation of the deportation of Gaza flotilla activists from Israel.