Bitcoin faces $268M ETF outflows, raising concerns over future rally prospects

Bitcoin faces $268M ETF outflows, raising concerns over future rally prospects

Bitcoin faces pressure as ETF outflows reach $268M and retail interest wanes, raising questions about the sustainability of its near $80,000 price amidst shifting market dynamics.

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On May 8, 2026, Bitcoin (BTC) experienced stagnation around $80,000 after failing to surpass $82,500. This pause in movement coincided with significant outflows from US-listed spot Bitcoin exchange-traded funds (ETFs), which recorded $268 million in net outflows on Thursday, ending a four-day positive trend.

Additionally, there were $270 million in liquidations of leveraged bullish Bitcoin futures within a single day, prompting concerns over a potential bear market. Retail engagement appears to be declining, highlighted by a 31% drop in revenue for Coinbase compared to Q1 2025 and a 47% decrease in crypto-related earnings at Robinhood.

Despite these challenges, expectations are rising for Kevin Warsh's potential appointment as the new Federal Reserve Chair, which traders believe could positively impact Bitcoin. The performance of the US dollar is also under scrutiny, as it remains weak, potentially favoring scarce assets like Bitcoin in the long run.

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