BTC drops below 70k! Bitcoin spot ETF loses 3.5 billion for 11 consecutive days, setting a record! Strategy selling coins triggers panic

U.S. Bitcoin spot ETFs have seen 11 consecutive days of net outflows, setting a historical record, with a total loss of nearly $3.5 billion; for full-year 2026, inflows have now officially turned negative. At the same time, Bitcoin today (the 2nd) fell below the $70,000 level for the first time since April 7. Strategy (formerly MicroStrategy) sold 32 bitcoins for about $2.5 million for the first time last week, breaking the long-standing “buy but never sell” strategy. Analysts believe this move, together with the massive ETF outflows, has created a double wave of selling pressure, and market panic sentiment is spreading.
(Background recap: Bitcoin ETF sets a record with “9 consecutive days of net outflows,” bleeding $2.8 billion! Funds rotate to AI semiconductors—analysts: Is the bottom getting close?)
(Additional context: MicroStrategy’s Strategy first sells 32 BTC! MSTR drops 5% in pre-market, breaking the “never sell coins” myth.)

Table of Contents

Toggle

• ETF bleeds for 11 days: from $2.8B to $3.5B, YTD inflows turn to zero
• Strategy’s first coin sale: 32 BTC’s symbolic meaning far outweighs the actual impact
• Multiple headwinds in tandem: the Fed, the Middle East, and the U.S. stock AI frenzy

The Bitcoin market is sounding alarms again. Bloomberg compiled data showing that U.S. Bitcoin spot ETFs have been hit by net fund outflows for 11 consecutive trading days, setting the longest streak of continuous outflows ever; during this period, investors withdrew nearly $3.5 billion in total, so full-year 2026 net inflows have officially turned from positive to negative.

At the same time, Bitcoin today dropped below the closely watched $70,000 psychological mark during intraday trading, the first time since April 7 this year. Market analysis suggests this selloff is driven by a stacking of multiple negative factors—massive ETF outflows, Strategy’s first-ever coin sale, and macroeconomic uncertainty.

ETF bleeds for 11 days: from $2.8B to $3.5B, YTD inflows turn to zero

SoSoValue data shows that this wave of outflows began on May 15. What CoinShares initially reported as “9 days of outflows totaling $2.8 billion” expanded to 35 days?—No, it expanded to 11 days and $3.5 billion within just two days. Assets under management (AUM) fell sharply from about $104 billion before the outflows to roughly $94 billion, wiping out about $10 billion.

Galaxy Research analysts pointed out early in the outflow wave that this was not simply a hedging or risk-adjustment move, but a “true directional recalibration” of funds (real directional recalibration). As the outflows continued to deepen, this view has been validated—cumulative net inflows in 2026 have fallen from the peak of $57 billion at the start of the year to about $5.566 billion, and full-year inflows have officially turned negative.

CoinShares reports that this is the third consecutive week of net outflows from digital asset investment products. The pattern is similar to the five-week outflow wave seen in January and February earlier this year.

Strategy’s first coin sale: 32 BTC’s symbolic meaning far outweighs the actual impact

On the same timeline, Strategy (formerly MicroStrategy), led by Michael Saylor, sold 32 bitcoins between May 26 and May 31 for a total value of about $2.5 million—its first time selling Bitcoin since December 2022. After the news broke, MSTR’s share price dropped more than 5% in pre-market trading.

The 32 bitcoins represent only about 0.0038% of Strategy’s total holdings of 843,706 BTC, which is negligible in value terms. However, analysts say the real “damage” is at the psychological level—given that for a long time the market has treated Strategy as a “buy-only, never-sell” Bitcoin bull symbol, this sale shocked the market.

The filing states that the reason for the sale is to pay preferred stock dividends. CEO Phong Le previously said the company would sell Bitcoin at cost basis (about $75,700), breaking even and resulting in no tax impact. However, Arca’s chief investment officer warned last month that the structure of Strategy’s $15 billion preferred stock had become “out of control,” with a 90%+ chance of selling Bitcoin this year.

Multiple headwinds in tandem: the Fed, the Middle East, and the U.S. stock AI frenzy

Besides ETF outflows and Strategy’s coin sale, the macro environment is also unfavorable for the crypto market. The Federal Reserve (the Fed) maintains a high-interest-rate stance, and the market expects the June meeting to hold rates steady. Tensions in the Middle East remain high, and the upcoming U.S. non-farm payroll employment data further push Wall Street institutions to temporarily take a defensive posture.

More importantly, the U.S. stock S&P 500 index has been setting consecutive all-time highs since May 26, and on Monday it closed at 7,620 points. Money is flowing out of the crypto market—“switching vehicles”—into AI and semiconductor stocks. After receiving presidential backing, Micron’s (Micron’s) single-quarter gain exceeded 200%. Galaxy Research describes this as a “directional recalibration,” not merely short-term risk aversion.

As of the time of publication, Bitcoin is temporarily quoted at $69,500, down about 3% on the day. The market sentiment index has fallen to 23 (extreme fear), and the RSI indicator shows oversold signals. Analysts warn that if Bitcoin cannot quickly reclaim the $70,000 level, the next support level may test $60,000.