Bitcoin trades $79.5K amid ETF outflows

Bitcoin traded near $79,500 on Friday, May 15, after a volatile week that included hotter U.S. inflation readings and the biggest one-day withdrawal from U.S. spot bitcoin exchange-traded funds in more than three months. (bls.gov) CoinMarketCap historical data showed bitcoin changed hands at $79,276.95 at the open on May 14 and closed that session at $81,051.25, after falling as low as $78,909.68 intraday. CoinGecko historical data showed bitcoin’s market capitalization at about $1.62 trillion on May 15. (coindesk.com) U.S. producer prices added to the week’s pressure. The Bureau of Labor Statistics said on May 14 that its producer price index for final demand rose 1.4% in April from the prior month, the largest monthly increase since March 2022, after gains of 0.7% in March and 0.6% in February. (bls.gov) Market participants had already been digesting an April consumer inflation report earlier in the week that showed firmer price pressures. ### How large were the ETF withdrawals? U.S. spot bitcoin ETFs recorded net outflows of about $635 million on May 13, according to multiple market data reports published on May 14. CoinDesk reported roughly $1.26 billion had been withdrawn from those funds over the previous five trading days, including a single-day outflow of $635 million on Wednesday. (coinmarketcap.com) Yahoo Finance, citing ETF flow data, said the May 13 outflow was the largest since January 29. BlackRock’s iShares Bitcoin Trust and other large issuers accounted for much of the redemptions, according to market reports that cited SoSoValue data. (bls.gov) Several crypto market outlets put the May 13 total at about $630 million to $635 million, with differences reflecting rounding and data presentation. ### What did Ethereum and the broader crypto market do? Ethereum traded near $2,200 to $2,250 in May 14 dealing, according to market-tracking sites and crypto price reports. CoinMarketCap’s automated market note said Ethereum was up 1.15% to $2,276.65 in 24 hours as of late May 14, while a separate market page tracked the token near the $2,250 range that day. (coindesk.com) Crypto price action diverged from parts of the equity market. Bitcoin’s May 14 session ranged between roughly $78,900 and $82,000 before ending above $81,000, showing intraday swings even as U.S. stock indexes pushed to records. (cryptorank.io) ### What were stocks doing at the same time? The S&P 500 and the Nasdaq touched fresh intraday record highs on Thursday, May 14, according to Reuters. Reuters reported that Nvidia’s gains and strength in technology shares helped lift both indexes as investors assessed economic data and a U.S.-China summit. CNBC said the S&P 500 later closed up 0.77% at 7,501.24 and the Nasdaq Composite ended 0.88% higher at 26,635.22, both at record closes. (coinmarketcap.com) That left bitcoin trading below its recent highs while benchmark U.S. stock indexes advanced. The price gap does not by itself establish a cause, but it shows crypto and equities were not moving in lockstep at the end of the week. (coinmarketcap.com) ### Which inflation report mattered most this week? The Bureau of Labor Statistics said on May 14 that final demand producer prices rose 6.0% in the 12 months through April, the largest annual increase since December 2022. The same release said nearly 60% of the April monthly rise came from a 1.2% increase in final demand services. (money.usnews.com) April consumer inflation also drew attention earlier in the week. A market report summarizing the CPI release said headline CPI rose 0.6% month over month and 3.8% year over year, with core CPI up 0.4% on the month. (coinmarketcap.com) ### What comes next for traders watching this move? The next scheduled inflation milestones will come from the Bureau of Labor Statistics’ regular monthly releases, which investors use to gauge Federal Reserve rate expectations and risk appetite. Crypto traders will also be watching the next daily U.S. spot bitcoin ETF flow data to see whether the May 13 withdrawal was a one-day event or the start of a broader redemption streak. (bls.gov) (msn.com)