Bitcoin Crashes 13% in Worst Week Since February, June 05

Bitcoin fell 13% this week to $62,562.63 USD, marking its worst week since February. The sell-off stems from capital flowing to AI infrastructure and the upcoming SpaceX IPO. Bitcoin ETFs recorded their longest streak of net outflows ever—13 consecutive days—draining $25 billion from the funds. Strategy’s surprise sale of 32 BTC for $2.5 million broke a four-year accumulation pattern, signaling a shift in institutional sentiment.

Why Bitcoin Sold Off This Week

Bitcoin dropped from $74,000 to $62,562.63 USD as investors redirected capital to artificial intelligence stocks and space companies ahead of SpaceX’s IPO. Michael Saylor, Strategy’s Executive Chairman, described the move as a “capital rotation, not a Bitcoin impairment.” Wall Street is funding AI infrastructure at historic scale—roughly $400 billion over six months—pulling liquidity from crypto markets.

Strategy’s June 1 disclosure that it sold 32 BTC between May 26 and May 31 at $77,135 per coin shocked the market. The company had not sold any bitcoin since December 2022, making the sale a psychological blow despite its tiny size relative to its 843,706 BTC treasury.

ETF Outflows Hit Record Levels

Bitcoin ETFs saw their 13th consecutive day of net outflows on June 4, the longest streak ever recorded. Total assets in the funds fell to $82.8 billion from $107.8 billion on May 14—a $25 billion decline in three weeks. Citi analyst Alex Saunders noted that ETF flows explain approximately 45% of weekly Bitcoin return variation, making them the primary driver of institutional adoption.

The outflows reflect a loss of narrative momentum. The Clarity Act, a crypto market structure bill that could have supported prices, is drifting further out of reach as legislative priorities shift. Without fresh regulatory catalysts, Bitcoin remains vulnerable to flow-driven price swings.

Technical Damage and Analyst Outlooks

Bitcoin’s 13% weekly decline pushed it into a technical bear market, down 22.7% from its four-week high. The move wiped out more than $600 billion in total crypto market value. Meyka’s technical indicators show the RSI at 24.47 (oversold), MACD at -2043.72, and the Awesome Oscillator at -6176.91, all signaling extreme weakness.

Standard Chartered’s Geoffrey Kendrick remained bullish despite the pain, maintaining a year-end price target of $100,000 USD. He warned that Bitcoin could face additional selling pressure if it falls below $60,000, but noted that fewer bullish positions remain to be unwound compared to past cycles. Meyka’s 12-month forecast stands at $97,867.61 USD, suggesting limited upside from current levels.

What Comes Next for Bitcoin

Bitcoin has declined 27% year-to-date while the S&P 500 surged 10%, creating a stark divergence that weighs on sentiment. Saylor expects Strategy to aggressively buy back Bitcoin once the capital rotation slows, similar to its pattern in 2022. However, Bitcoin’s sharp volatility and rapid price changes mean recovery timing remains uncertain.

With Meyka rating Bitcoin a C+ and forecasting $97,867.61 USD by year-end, the data points to a recovery opportunity if capital rotation reverses. However, absent fresh regulatory wins or a slowdown in AI funding, near-term pressure may persist.

Final Thoughts

Bitcoin’s 13% weekly crash reflects capital rotation to AI, not fundamental weakness. Standard Chartered targets $100,000 by year-end, but Meyka’s C+ grade and technical oversold conditions suggest volatility will persist until ETF flows stabilize.

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The content shared by Meyka AI PTY LTD is solely for research and informational purposes.  Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.