Bitcoin Fails to Reclaim $80,000 as ETF Outflows Spur Fresh Drop Warning

Bitcoin failed to retake $80,000, raising the risk of further losses. Outflows from crypto investment products, including BlackRock’s Bitcoin exchange-traded fund, have added to concerns that institutional demand is weakening.

Forbes reported on May 26 that Bitcoin was trading about 40% below its record high of $126,000 reached in October 2025. The cryptocurrency resumed its decline after an April rebound and failed to hold the closely watched $80,000 level.

As traders pull money from BlackRock’s Bitcoin ETF, warnings have emerged of a potential “bloodbath” in the token’s price, Forbes reported. One crypto analyst wrote on X, formerly Twitter, that Bitcoin’s price action could “quickly turn into a bloodbath.”

The analyst cited technical chart patterns. He wrote that when Bitcoin was last rejected at the top of a bear flag, it plunged nearly 40% in 23 days. Forbes said another 40% drop could push the price into the low-$40,000 range.

ETF flows have also weighed on sentiment. About $1.5 billion was pulled last week from global crypto investment products, including U.S. spot ETFs managed by BlackRock, Fidelity and 21Shares, according to CoinShares. That was a second straight week of net outflows and the third-largest weekly outflow of 2026.

James Butterfill, CoinShares’ head of research, said cumulative outflows over the past two weeks totaled $2.5 billion. Despite progress on the U.S. Clarity Act, he said, risk-off sentiment tied to Iran had become broader and deeper.

Bitcoin ETFs were a key driver of last year’s bull run. Forbes said heavy Bitcoin buying through ETFs by asset managers including BlackRock was a major factor behind the token’s rally to $126,000 in October 2025.

That support has recently faded. Linh Tran, a market analyst at XS.com, said ETF fund flows were the bigger negative factor for Bitcoin. Citing SoSoValue data, Tran said U.S. spot Bitcoin ETFs posted net outflows for six straight trading sessions from May 15 to May 22, with total withdrawals of about $1.55 billion.

On May 18 alone, net outflows reached $648 million, including $448 million from BlackRock’s IBIT, Tran said. That indicates institutional demand remains relatively weak and the current rebound lacks sufficient support to confirm a sustainable advance.

Bitcoin could face renewed selling pressure if it fails to reclaim $80,000, Tran added, because ETF flows remain negative and the macro backdrop is not fully supportive.

Market participants say Bitcoin’s near-term direction hinges on ETF flows and whether it can recover $80,000. Continued outflows from spot ETFs could limit the strength of any rebound, while a return of institutional inflows would help bolster confidence in a price recovery.