#BTC Recent Continuous Plunge of Bitcoin: Five Core Reasons (Multiple Negative Factors Resonating)

1. Macroeconomic Fundamentals: The Fed's rate cut expectations completely failed, liquidity tightening (the fundamental reason)

US inflation and employment data continue to exceed expectations, core PCE remains high, and the market shifts from "multiple rate cuts this year" to maintaining high interest rates for the long term, or even slight rate hikes.
Bitcoin is an interest-free speculative asset; as US Treasury yields rise, funds continue to withdraw from risk assets, and a strong dollar keeps pressuring prices, which is the underlying logic of this bear market.

2. Collapse of Institutional Confidence: Leading crypto institutions sell for the first time, breaking long-term bullish beliefs (the direct trigger)

The world's largest Bitcoin holding company, Strategy (formerly MicroStrategy), sold BTC (32 coins, about $2.5 million) for the first time in nearly four years on June 1, breaking the industry consensus of "never selling Bitcoin," causing panic among institutional bulls.
Combined with large BTC transfers from Mt. Gox’s hot wallet, market concerns about legacy compensation chips being concentrated in sell-offs, further increasing selling pressure.

3. US spot ETF experiences continuous large outflows, market support funds withdraw (core negative fundamental)

Since late May, US Bitcoin spot ETFs have experienced net outflows for 11 consecutive trading days, with total withdrawals exceeding $3.45 billion, setting the longest continuous redemption record since listing; leading ETFs like BlackRock have continued large redemptions, and institutional funds of hundreds of billions that entered early in the year have shifted from net inflow to outflow, losing key buying support.

4. Funds diverted to AI stocks and giant IPOs, existing capital continues to "bleed"

US stock AI sector continues to hit new highs, and mega IPOs like SpaceX have launched, causing global speculative capital to withdraw from the crypto market and shift to US equity markets; the S&P 500 keeps setting new highs, creating a seesaw effect between crypto and US stocks, leading to ongoing shrinkage of crypto market capital.

5. Leverage liquidations cascade, negative feedback accelerates decline (market stampede)

After breaking key support levels at 70k and 65k, long contracts are concentrated in stop-loss liquidations: over 280k traders liquidated in one day, with total liquidation exceeding $1.8 billion, 90% of which are long positions closed; price drops → triggers stop-loss sales → continues to fall, creating a vicious cycle of automated sell-offs, with the panic index dropping into extreme fear territory.

Additional: Geopolitical disturbances

Recurrent negotiations over the Hormuz Strait between the US and Iran, and the shifting Middle East situation, lead safe-haven funds to prioritize gold and USD, avoiding high-volatility crypto assets, indirectly dragging down the market.

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