Grayscale Warns Delayed Fed Cuts Prolong BTC Weakness After Record $635M ETF Outflow

Bitcoin dipped to $79,729 on May 14 amid a record $635.23 million single-day spot ETF outflow, extending a week of institutional caution. The story began with Fed inflation fears and neutral on-chain signals on May 10, escalated with Keel Infrastructure's 269 BTC ($20M) sale, Bitcoin Society pausing treasury buys, $90.7B Q1 tokenized gold volume, Wintermute deeming the $80K rally a fragile short squeeze, and Ray Dalio's repeated critiques of BTC's safe-haven status versus gold through May 13. Michael Saylor pushed back via CLARITY Act advocacy and WisdomTree's model showing BTC 26% undervalued relative to gold, but Grayscale warned on May 15 that delayed rate cuts favor yield-bearing assets, risking prolonged BTC downside.