- Bitcoin loses 80k, 70k – next stop 65k? Downturn deepens
- Strategy sells BTC for first time since 2022
- Multi-week ETF outflow streak also weighs on sentiment
- $5.1bn exits as the party cools
Bitcoin selloff accelerates, drops to two‑month lows
The music has slowed sharply for crypto. Since mid‑May, when prices pushed above three-month highs near $82,500, Bitcoin has been forced lower by – among (fundamental) others – stiff technical headwinds (notably the 200‑day SMA), sliding to Wednesday’s two‑month lows near $65,000. Quite remarkably, the world’s largest cryptocurrency shed almost 10% in just the first week of summer as momentum has clearly faded.
No longer top 10: market cap slips below $1.5tn
Bitcoin’s fall from favour is increasingly visible. Its market capitalisation has dropped below $1.5 trillion (currently around $1.34tn), pushing it out of the world’s top‑10 assets (since last week) and down to roughly 14th place – behind heavyweights such as Meta, Samsung and Tesla. Having long held a consistent top‑tier position, this slide reflects a broader (and quite meaningful) rotation of capital away from crypto and toward AI‑driven equities as well as precious metals.
Decoupling intensifies as capital rotates elsewhere
At the core of the downturn is a weakening of the digital assets’ appeal. With macro uncertainty persisting since last October’s market disruption, opportunity costs have risen. Investors are finding more attractive alternatives: gold has regained its shine (since last October – and now staying resilient), and the AI trade has captured both the imagination and capital. In short, investors are reallocating toward assets offering stronger near‑term narratives and risk‑reward profiles, leaving crypto lagging without a strong near-term catalyst.
Can’t compete with the AI trade
Bitcoin’s weakness stands in stark contrast to equities, particularly tech, with which, as a risk asset, it traditionally traded in tandem. The US100 continues to push to record highs, highlighting a growing divergence. Once viewed as a high‑beta proxy for tech stocks, Bitcoin has lost that tight relationship with the gap widening (as illistrated in the chart) ever since the crypto crash and more so after the Iran war breakout. Instead, it is now driven more by crypto‑specific sentiment – which is currently close to its lows – rather than broader risk appetite.
ETF outflows exceed $5bn in longest streak on record
Pressure is also evident in fund flows. Spot Bitcoin ETFs – a key gauge of institutional and retail participation – have experienced heavy withdrawals. Investors have pulled $5.11 billion from US‑listed Bitcoin ETFs over the past 14 sessions (with only one brief interruption), marking the longest sustained outflow streak since their launch in 2024. This extended run from mid‑May to early June underscores persistent cooling demand.
A market drifting without a ‘clarity’ catalyst
Like a helium balloon on a windless day, Bitcoin lacks lift. Geopolitical uncertainty and persistent ETF outflows continue to weigh, while regulatory clarity remains elusive. Earlier optimism surrounding the ‘Clarity Act’ (the crypto market structure legislation), has given way to doubt over timing and substance. The result: profit‑taking, weakening flows, fading speculative appetite and broad market fatigue. But as nothing uplifts BTC as of late – what shall it take? Even supportive political rhetoric – such as President Trump’s recent pledge not to “never let crypto down” – has failed to spark a response.
Meanwhile, other assets have embraced AI momentum and geopolitical narratives, leaving Bitcoin increasingly isolated from the broader risk spectrum.
Strategy must have something to do with it
Strategy’s recent sale adds a fresh layer of psychological pressure. At a sensitive moment – and in a market built on the belief (rather, support story) that its largest holders will keep accumulating (where are the whales?) – even a modest shift can carry outsized impact. Strategy’s sale of 32 BTC (around $2.5 million) on June 1 – its first since 2022 – is negligible relative to its roughly $60 billion holdings, yet symbolically significant. The move has unsettled sentiment, raising questions about one of Bitcoin’s strongest support pillars.
Concerns are growing that stress on Strategy – whose shares are down sharply 14% this week and more than 70% from their peak – could spill over into broader crypto markets. Together, these forces risk reinforcing a negative feedback loop, with investors increasingly capitulating.
Ether may continue to outperform Bitcoin
With Bitcoin under pressure, attention is shifting to the second largest cryptocurrency and largest altcoin, Ether. Its relative outperformance versus the ‘crypto king’ could continue to improve, supported by structural differences: Ether offers a staking yield (around 3%), reducing the need for treasury holders to sell. By contrast, Bitcoin treasury models rely more heavily on price appreciation. That said, Ether is not immune – it has also weakened, slipping below $2,000 toward multi‑month lows near $1,800, while also experiencing $847.5 million in outflows since early May.
Technical outlook: Back to square one, $65k under threat
Technically, the pattern seen earlier this year – when Bitcoin fell from above $90,000 to near $60,000 – is re‑emerging. BTC now hovers around $65,000, searching for support after dropping from $82,800 in early May. The bias remains bearish: RSI is approaching oversold territory, with downside levels at $62,000 and then the 15‑month low near $60,000. On the upside, resistance sits in the $68,800-$70,500 range.