Bitcoin’s Conflicting Signals: Inflation Fears Spur $635 Million ETF Exodus Even as Miners Push Hashrate Records

Bitcoin recovers from sub-$80K dip as hot PPI data fuels rate hike odds, ETF outflows hit $635M, and miners expand despite losses.

Bitcoin clawed its way back above $81,700 on Thursday after briefly sliding below the psychologically charged $80,000 mark, caught between a red-hot inflation reading and a wave of operational expansion that reveals the industry’s deepening contradiction. The session offered a stark split screen: institutional capital fled the asset at the fastest clip since January, while miners reported quadruple-digit growth in computing power and a major broker opened the door for 35 million new retail investors.

The trigger for the sell-off came from the producer price index, which hit an annualised 6 percent — well above expectations. The CME FedWatch Tool now puts the probability of a rate hike at the June meeting at 97 percent, effectively slamming the door on the dovish pivot many traders had hoped for. Broader market probabilities assign a 40 percent chance of any further tightening over the cycle, a number that kept risk appetite on a short leash. The Crypto Fear & Greed Index slipped to 34, firmly in “fear” territory.

Kevin Warsh’s appointment as Federal Reserve chair injected a dose of long-term ambiguity. Warsh has publicly described Bitcoin as “new gold” for younger investors, a remark that sets him apart from his predecessors. Yet that sentiment offers little insulation against the immediate liquidity squeeze higher rates produce, and the market is pricing in precisely that tension.

ETF Outflows Lead the Retreat

Net outflows from US spot Bitcoin ETFs reached $635 million in a single day, the largest withdrawal since the end of January. BlackRock’s iShares Bitcoin Trust absorbed the heaviest blow, shedding $285 million, while the ARK 21Shares Bitcoin ETF lost $177 million. The velocity of the exits signals how quickly institutional sentiment can pivot when macro data shifts.

The contrast with the retail-facing side of the market could hardly be starker. Charles Schwab launched direct spot crypto trading on May 14, making the asset available to roughly 35 million client accounts. Infrastructure for broader adoption continues to expand even as the capital flows head the other way.

Miner Losses and a Hashrate Explosion

Bitdeer delivered what may be the quarter’s most aggressive expansion numbers. Revenue surged 170 percent to $188.9 million, propelled by self-mining operations. The company’s hashrate jumped 400 percent to 65 exahashes per second, producing 2,033 Bitcoin during the period. Yet the bottom line tells a different story: Bitdeer posted a net loss of $159.5 million, which management attributed to heavy investment and the transition to US GAAP accounting.

The company is doubling down on a second revenue stream. Its AI cloud business reached an annualised recurring revenue of $69 million, and Bitdeer plans to bring a 180-megawatt AI data centre online in Norway by year-end.

Nakamoto Group reported an even deeper net loss of $238.8 million, despite revenue that grew 500 percent quarter-over-quarter. The driver was a $102.5 million mark-to-market charge tied to the decline in Bitcoin’s price during the quarter. The firm continues to hold more than 5,000 BTC but sold a portion to shore up working capital, a sign that even committed holders are feeling the pinch.

MARA Holdings, the largest publicly traded miner by market cap, disclosed a billion-dollar quarterly loss and said it had sold more than 20,000 Bitcoin to reduce debt. The company signalled a strategic pivot, planning to redirect virtually all of its future capacity toward AI infrastructure. The move underscores how the post-halving economics are forcing consolidation and reinvention.

Sovereign selling added to the pressure. The Kingdom of Bhutan transferred another $8 million worth of Bitcoin on Thursday, bringing its total 2025 liquidations to nearly a quarter of a billion dollars.

Technical Levels and Trapped Leverage

The price rout triggered an immediate violent reaction on exchanges. Binance recorded more than $850 million in sell orders within a single hour, and open interest across leveraged positions contracted sharply as long positions were liquidated.

Bitcoin now sits just below its 200-day moving average at $82,280.75, a level that has acted as resistance throughout the week. The immediate support zone lies between $78,000 and $79,000. Should that break, the 50-day moving average near $74,600 becomes the next obvious floor. For now, the recovery above $80,000 keeps the correction contained, but the macro clock is ticking.