Yesterday's Bitcoin Review

$BTC
Bitcoin plummeted sharply yesterday, dropping from a high of 74,179 to 71,350 within the day, a nearly 4% decline, hitting a 6-week low. In 24 hours, the entire network experienced liquidations totaling $523 million, including $390 million from long positions, with over 145k traders being liquidated, marking a concentrated blow to bullish traders.

Institutional confidence wavers: Strategy Inc. broke the "buy-only" convention by selling 32 Bitcoin at an average price of $77,135 from May 26 to 31, cashing out $2.5 million, sparking concerns about large-scale institutional sell-offs.

Geopolitical risks: The US-Iran conflict escalated, Iran paused communication with the US and announced strikes on US military targets, the Strait of Hormuz tensions intensified, crude oil surged over 8%, and risk aversion suppressed risk assets.

Macro data bearish: The US May ISM Manufacturing Index exceeded expectations, US Treasury yields and the dollar index rebounded in tandem, and offshore RMB fell below 6.77.

Continuous capital outflows: Bitcoin spot ETF has experienced net outflows for several consecutive days, with a total outflow of over $2.5 billion in two weeks, indicating significant institutional risk aversion.

Rising rate hike expectations: The market bets that this Friday’s non-farm payroll data may be strong; if employment growth exceeds expectations, it will further reinforce the Fed’s rate hike expectations, with the probability of a June rate hike rising to 2.7%.

Overall outlook: Bearish dominance, mainly shorting on rebounds. The current market sentiment is extremely fearful (Fear & Greed Index at 25), buying momentum is extremely weak, and any rebound could be a trap to shake out traders. #美伊谈判博弈