Bitcoin's recent price weakness stemmed primarily from ETF outflows triggered by stronger-than-expected U.S. inflation data in April, rather than selling pressure from MicroStrategy, according to 10xResearch analyst Markus Thielen. Thielen argues that hot inflation readings rattled macro-sensitive investors, prompting them to reduce exposure through spot Bitcoin ETFs — a key liquidity channel since their January 2024 launch. The analysis pushes back against narratives blaming corporate Bitcoin holders for the downturn. Looking ahead, Thielen suggests the pace of any recovery will depend heavily on Wednesday's Consumer Price Index release: softer CPI figures could ease rate-hike fears and restore risk appetite, while another upside surprise may extend the sell-off. The argument underscores how closely Bitcoin's short-term price action now tracks traditional macroeconomic indicators.
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