Bitcoin’s mid-week rally to $67,000 evaporated on Friday as the leading cryptocurrency tumbled below the $64,000 mark, wiping out all gains from its recent seven-day climb. Binance data showed BTC trading at approximately $63,919, a loss of over 2.3% in 24 hours, as a confluence of bearish factors – from institutional ETF outflows to renewed trade war rhetoric and surging bond yields – drove a sharp sell-off.
ETF Exodus and BlackRock’s Massive Moves
Spot Bitcoin ETFs had been on a winning streak, attracting around $1 billion over seven days for the first time since April. That trend reversed abruptly on Thursday when investors pulled out more than $200 million. The real shock came on Friday as on-chain data revealed BlackRock moved 3,126 BTC – worth roughly $203 million – from its IBIT Bitcoin ETF wallet to Coinbase Prime. Such transfers, typically associated with client redemptions, were executed in multiple transactions, including several 300-BTC batches and a single 126.168-BTC transfer. The full day’s ETF flow data remains pending, but the uncertainty alone added to selling pressure.
Trump’s Tariff Threats Target the EU
Compounding the crypto dip, President Donald Trump once again escalated trade tensions. In a fresh salvo aimed at the European Union, he accused the bloc of imposing heavy penalties on U.S. tech giants like Apple, Meta, and Google. Trump announced he would “immediately initiate a 301 Investigation” into these practices and warned of “a substantial TARIFF to be placed on them at the earliest possible moment.” Historical correlations show that during previous tariff flare-ups, Bitcoin suffered severe drops, and this time was no different – within hours, BTC slid to just under $63,000.
Bond Yields Surge, Stablecoin Liquidity Dries Up
Traditional markets also weighed on risk assets. The U.S. two-year Treasury yield climbed to 4.31%, far above the Fed’s target rate, signaling expectations of further rate hikes. CME’s FedWatch Tool indicated a 0.25% increase is priced in for September, part of two anticipated hikes by year-end. Meanwhile, CryptoQuant analyst Darkfost highlighted that stablecoin inflows to exchanges have plummeted to their lowest level since 2025. The 30-day average inflow of USDT and USDC on Ethereum now sits at $2.3 billion, versus a 365-day average of $3.7 billion and a peak of $5.6 billion at Bitcoin’s all-time high. This drying liquidity suggests weak buying appetite. Analyst Ted noted on X that the $65,000 support zone has been lost, with $62,500–$63,000 as the next critical floor; a break below could invalidate the low-timeframe market structure, according to wealth manager accounts. Rekt Capital added that Bitcoin is still rejecting from the 50-month EMA at $65,950, mirroring 2022 bear market patterns.
Regulatory Fog Adds to Uncertainty
Further clouding the outlook, the Digital Asset Market Clarity Act faces hurdles in the Senate. Democrats have rejected proposed ethics limits as too weak, and Senate Majority Leader John Thune said passage before the summer recess is unlikely. With Bitcoin still trading roughly 50% below its record high, the ongoing bear market shows little sign of abating.
