Bitcoin ETFs Reel Under Oil Price Surge, Treasury Yield Hike

Bitcoin's spot ETFs have been facing increased competition from traditional assets as oil prices surge above $100 a barrel and Treasury yields approach 5%. According to Markus Levin, co-founder of dePIN blockvhain XYO, this shift could be more related to risk reduction in response to macroeconomic shocks rather than a wholesale retreat from Bitcoin.

Last week, spot Bitcoin ETFs recorded net outflows of approximately $463 million, ending three consecutive weeks of inflows. This reversal was triggered by the renewed U.S.-Iran conflict and its impact on oil prices and Treasury yields. Levin attributes the flow reversal to investors reducing risk in response to a broader macro shock.

The 10-year Treasury yield crossing 5% has increased the opportunity cost of holding non-yielding assets such as Bitcoin, making traditional bonds more attractive for institutional capital. If this trend continues, Bitcoin may face tougher competition for institutional money, especially if oil prices remain high and inflation expectations continue to rise.