For Bitcoin, the setup is more complicated. When bond yields jump, funds often lose money and sell assets, including . Many investors still treat Bitcoin as a risk asset. So during panic selling, it can fall alongside stocks and suffer sharp short-term moves.
Still, some market participants see the pullback as part of a broader liquidity cycle. They argue that the current weakness is not tied only to Bitcoin itself. ETF flows are adding to that pressure. Bitcoin ETFs have seen more than $1 billion in outflows this month alone, which marks the weakest ETF performance since Q1 2026.
That weakness has also pressured institutional valuations and balance sheets. Even so, some traders still view the stress as a possible setup for a Bitcoin supercycle.
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