Stock Market Impact: Bitcoin price dropped 4.5% to $61,254, positioning it for a 17% weekly loss; spot Bitcoin ETFs suffered $1.4 billion net outflows, the fourth straight week of >$1 billion withdrawals, indicating heightened risk aversion in crypto markets.
Listed Companies and Sectors: Institutional selling was partly driven by a shift toward artificial‑intelligence equities, with anticipation of large IPOs from SpaceX, OpenAI and Anthropic boosting AI‑sector sentiment at the expense of non‑yielding crypto assets.
Investment Flows: The $1.4 billion outflow from Bitcoin spot ETFs reflects a withdrawal of institutional capital from crypto‑related products; retail sentiment also turned negative as the Coinglass Bitcoin‑Coinbase premium index showed Bitcoin trading at a deep discount on the largest U.S. exchange.
Interest Rates, Inflation, and Liquidity: The U.S. May jobs report added 172,000 jobs, unemployment remained at 4.3%, and average hourly earnings rose 0.3%, reinforcing expectations of at least one Federal Reserve rate hike by the end of 2026, which could tighten liquidity and sustain pressure on risk assets.
Fiscal or Monetary Policy: Analysts note that despite strong payroll numbers, modest wage growth and stable unemployment may temper aggressive monetary tightening; however, rising oil prices linked to renewed U.S.–Israel military actions against Iran have revived inflation concerns, potentially influencing future policy decisions.
Broader Crypto Market: Altcoins mirrored Bitcoin’s decline: Ether fell 9.4% to $1,617.57 (≈20% weekly), hitting a 14‑month low; XRP dropped 6% to $1.1044; Cardano slumped >15% to a five‑year low; Solana, BNB, Dogecoin and $TRUMP also posted double‑digit weekly losses.
