Bitcoin dips below $57k as spot ETFs falter amid weak market sentiment

Bitcoin Takes a Dip: Breaking a Two‑Month Low

Bitcoin slid below $56,500 today, the deepest drop in over two months. It looks like the whole crypto universe went on a collective price check‑mate: markets were bleeding losses across the board.

What’s the story behind the plunge?

In the last 36 hours, roughly half a $500 million of long positions in Bitcoin futures got liquidated, according to CoinGlass.
The rout also rattled trader optimism, sending May and June futures premiums into negative territory – the latest update from Deribit.
Even the age‑old S&P 500 dipped 1.5%, fueling doubts about a rate cut this year. The consensus? No cuts before next September and that likely won’t change because inflation and job market are still on a hot streak.

Daily watch list: What the next hours might bring

ADP non‑farm employment numbers
Job Openings & Labor Turnover Survey (JOLTS)
ISM Manufacturing PMI release
Fed’s rate decision & subsequent speech on inflation trajectory

Even though crypto usually dances to its own beat—standing firm when the stock market dips or when economic numbers surprise—this time risk appetite took a nosedive. Investors are now tuning into the Fed’s vision more closely than ever.

ETF angst: US spot funds feel the burn

US Bitcoin spot ETFs suffered the most significant outflows in their history, dropping by roughly $70 million for the first time since launch, excluding GBTC’s pull‑out. On top of that, GBTC’s own outflows added another $161.6 million in total pressure, according to SoSo Value.

In Hong Kong, newly minted Bitcoin and Ethereum spot ETFs also ran into a rocky start. Trading volumes and inflows were a fraction of the US size, and the market timing wasn’t sweet. The drama was reminiscent of January’s “sell‑off” wave, when the sector felt the sting of early liquidity squeezes.

Remember how the US launch in January saw a flood of capital that catapulted Bitcoin to new highs? That huge wave outstripped many legacy ETF launches and was basically a “boom” for the digital ledger. With that Y‑to‑Y lesson in mind, keep an eye on how Asia’s investor appetite rolls out for new ETFs.