Key Takeaways
- Spot Bitcoin ETFs in the United States recorded $277 million in net withdrawals on May 7, halting five consecutive days of positive flows
- BlackRock’s IBIT experienced $98 million in single-day outflows; Fidelity’s FBTC registered withdrawals for two consecutive sessions
- Bitcoin retreated beneath $80,000 following rejection at the $82,000–$82,500 resistance level
- Quarterly revenue at Coinbase declined 31% while Robinhood’s crypto division dropped 47% year-over-year, signaling diminished retail participation
- Dollar weakness and speculation surrounding a potential Strategic Bitcoin Reserve provide support for medium-term bullish narratives
The five-day winning streak for U.S. spot Bitcoin ETFs came to an abrupt halt on May 7, with net withdrawals totaling $277.5 million. This reversal followed a period that saw more than $1.6 billion flow into these investment vehicles since the beginning of May.
BlackRock’s iShares Bitcoin Trust (IBIT) accounted for $98 million of the daily exodus. This marked a sharp turnaround for the fund, which had absorbed over $1 billion in Bitcoin purchases during the preceding five trading sessions. IBIT continues to maintain approximately $75.8 billion in total assets under management.
Fidelity’s Wise Origin Bitcoin Fund (FBTC) experienced its second consecutive day of redemptions, with combined outflows reaching $167.94 million over the two-day period. The fund’s asset base currently sits at $15.24 billion.
Collectively, U.S. spot Bitcoin ETFs maintain holdings worth approximately $106.77 billion in Bitcoin.
Bitcoin’s price hovered in the $79,700–$80,180 range on Friday, retreating after encountering resistance above the $82,000–$82,500 threshold earlier in the week. The pullback triggered liquidations of approximately $270 million in leveraged long positions within a 24-hour window.
Retail Participation Shows Weakness
Financial reports from leading cryptocurrency exchanges revealed contracting retail engagement. Coinbase disclosed a 31% revenue decrease compared to the first quarter of 2025. Robinhood’s cryptocurrency segment experienced an even steeper 47% decline during the same timeframe.
Jake Kennis, senior research analyst at Nansen, observed that Bitcoin’s advance beyond $81,000 was primarily fueled by institutional spot purchases and short squeeze liquidations — rather than grassroots retail buying. Funding rates remained notably subdued throughout the price movement.
Lacie Zhang, research analyst at Bitget Wallet, suggested that absent a resurgence in retail activity, retracements toward the $75,000–$78,000 support range remain plausible.
Top-tier traders on Binance reduced their Bitcoin long exposure to the lowest level in more than four weeks. Meanwhile, at OKX, the long-to-short ratio among elite traders plummeted to 0.27, down dramatically from 1.20 just ten days prior.
Broader Context: Employment Figures and Currency Dynamics
April’s U.S. nonfarm payrolls registered 115,000 new jobs — substantially exceeding the anticipated 62,000. March figures were also revised upward to 185,000. The unemployment rate remained steady at 4.3%.
The robust employment data reinforced a near-term risk-on sentiment, though the Federal Reserve’s capacity to implement rate cuts remains constrained by ongoing energy-related inflationary pressures.
The U.S. dollar has depreciated against major global currencies over the past two months. Market observers suggest this diminishes the appeal of holding U.S. Treasuries and may redirect capital flows toward scarce assets like Bitcoin.
Renewed uncertainty regarding a U.S.-Iran ceasefire also created market volatility. Iranian representatives alleged that Washington violated agreed-upon terms, while reports of additional strikes near the Strait of Hormuz pushed crude oil prices higher on Friday.
In a separate development, Kevin Warsh is broadly anticipated to succeed Fed Chair Jerome Powell. Warsh has previously articulated favorable views on Bitcoin and recently disclosed ownership of cryptocurrency assets and stakes in related enterprises.
Polymarket prediction markets indicate growing probability that the U.S. Strategic Bitcoin Reserve could commence Bitcoin accumulation by 2027.
Bitcoin held on exchanges decreased by 9,832 BTC between May 1 and May 9, declining from 2,686,423 to 2,676,591, per CryptoQuant data.
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