Bitcoin Faces Near-Term Pressure as ETF Outflows Hit $1.4 Billion, Says Laser Digital

Bitcoin may remain under pressure in the short term as institutional demand softens, ETF outflows accelerate, and broader risk markets struggle to regain momentum.

According to the latest weekly market commentary from Laser Digital's Derivatives Trading Desk, last week's crypto selloff occurred without a single dominant catalyst. Instead, analysts pointed to a combination of weaker equity markets, fading demand, and a lack of meaningful buying activity across the sector.

The result was a broad decline that weighed on Bitcoin and much of the digital asset market heading into June.

Demand Has Started to Cool

One of the biggest concerns highlighted by Laser Digital is the apparent slowdown in buying activity from some of the market's largest participants.

The firm noted that Strategy did not purchase any Bitcoin between May 18 and May 24, removing a source of consistent demand that has helped support the market during previous periods of weakness.

At the same time, spot Bitcoin ETFs experienced approximately $1.4 billion in net outflows last week, marking a significant reversal from the strong inflows that helped fuel Bitcoin's rally earlier this year.

Combined with limited participation from retail investors, the market currently appears to be lacking a strong catalyst to drive prices meaningfully higher.

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Why Bitcoin Could Stay Weak

Laser Digital believes Bitcoin may continue trading in a softer range for the time being.

The derivatives desk pointed to continued weakness in STRC pricing and the absence of strong retail demand as reasons for caution in the near term.

However, analysts do not necessarily expect a prolonged downturn.

Instead, the firm believes Bitcoin could gradually recover later this month as additional demand enters the market and capital begins flowing back into the ecosystem.

Rather than a sharp breakout, the expectation is for a slower grind higher once buying activity improves.

HYPE Continues to Outperform

While Bitcoin struggled, Hyperliquid's HYPE token remained one of the strongest performers in crypto. Laser Digital noted that HYPE continued to show relative strength even as broader market sentiment weakened.

Meanwhile, several tokens that previously benefited from real-world asset (RWA) narratives experienced pullbacks as investor enthusiasm faded and capital rotated toward stronger-performing sectors.

The divergence highlights a growing trend throughout 2026: investors are becoming increasingly selective, rewarding projects with strong fundamentals and sustained momentum rather than broad market narratives.

Options Traders Are Positioning Defensively

The derivatives market also reflected a more cautious tone.

Volatility remained relatively subdued early last week as major cryptocurrencies traded within tight ranges but increased sharply once selling pressure accelerated.

A large options expiry on May 29 involving significant Bitcoin and Ethereum put positions may have contributed to the rebound that followed, as market makers adjusted hedges and repositioned exposure.

More notably, Laser Digital observed active buying of June 5 Bitcoin $70,000 put options over the weekend. Put options are commonly used as downside protection, suggesting traders remain concerned about potential short-term weakness and are willing to pay for insurance against further declines.

The firm expects demand for protective puts to remain elevated, keeping bearish option positioning relatively expensive in the near term.

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All Eyes on Friday's Jobs Report

Beyond crypto-specific developments, macroeconomic data could play a major role in shaping market sentiment this week.

The U.S. Non-Farm Payrolls report on Friday is expected to be the key event, with economists forecasting approximately 93,000 new jobs and an unemployment rate of 4.3%.

Additional releases including ISM manufacturing data, JOLTS job openings, and ADP employment figures are also scheduled throughout the week.

According to Laser Digital, risk assets would likely respond positively if economic data comes in near expectations without reigniting inflation concerns.

For now, however, crypto markets remain caught between weakening demand and hopes that institutional capital returns later this month.

Source: Laser Digital Derivatives Trading Desk Weekly Market Commentary (Week of June 1, 2026).

Disclaimer: This article summarizes market commentary provided by Laser Digital's Derivatives Trading Desk and should not be considered investment advice. Virtual assets are highly volatile and may lose value in part or in full.