Bitcoin drops below $82,000 as $635 million exits US spot ETFs

Bitcoin fell below $82,000 during Asian trading on Friday, pressured by renewed global market selling and $635 million in outflows from US spot Bitcoin ETFs. The cryptocurrency dropped 1.3% to $81,623, extending losses after a sharp decline in US stocks on Thursday. The ETF outflows ended a three-day streak of positive inflows, signaling a reversal in institutional demand. The broader market faced pressure from rising Middle East tensions, which pushed oil prices higher and revived inflation concerns. The Nasdaq Composite fell 2.6% and the Philadelphia Semiconductor Index dropped 6.7%, with tech losses adding to risk-off sentiment. Bitcoin has fallen roughly one-third from its all-time high above $126,000 a year ago. US spot Bitcoin ETFs had attracted about $1.1 billion in net inflows earlier this week, recovering from $909.6 million in outflows over the prior two weeks. Geopolitical uncertainty and upcoming US midterm elections add further market volatility.