Bitcoin Crashes Below $70,000 as Strategy Sells First BTC Since 2022

Bitcoin fell 4.4% to $69,400 on June 02, breaking below the $70,000 level for the first time since April 8. Strategy, the largest corporate holder with 843,706 bitcoins, disclosed it sold 32 coins for $2.5 million at an average price of $77,135 to fund shareholder dividends. The sale marked the first public bitcoin disposal in over three years and triggered $800 million in leveraged liquidations and massive ETF outflows.

Strategy’s Historic Bitcoin Sale Breaks Investor Confidence

Strategy filed an 8-K with the SEC on Monday revealing the sale of 32 bitcoins in the last week of May. The company raised $2.5 million to pay preferred stock distributions to shareholders. This was only the second time Strategy has sold bitcoin since it began accumulating in 2020, with the previous sale occurring in December 2022.

Strategy’s stock price fell 5.85% on Monday following the disclosure. Founder Michael Saylor’s net worth dropped by $183 million as a result of the selloff. Despite the sale, Strategy remains the largest institutional bitcoin holder with 843,706 coins purchased at an average price of $75,699.

Spot ETF Outflows Hit Record Levels

Spot bitcoin ETFs recorded $1.42 billion in net outflows during the week of May 25-29, marking the third-largest weekly withdrawal on record. BlackRock’s iShares Bitcoin Trust (IBIT) led the exodus with $966 million in outflows, including a single-day redemption of $448 million. Grayscale’s GBTC saw an additional $175 million withdrawn.

The outflows extend a three-week trend of institutional selling exceeding $1 billion per week, bringing total redemptions to more than $3.5 billion. Spot bitcoin ETFs still hold a combined net asset value of $94.17 billion, with cumulative historical net inflows remaining positive at $55.66 billion.

Technical Breakdown Signals Further Downside Risk

Bitcoin broke below a multi-month ascending channel that had held since February, triggering a bearish technical breakdown. The Relative Strength Index (RSI) plunged below 30 into oversold territory at 26, while the Chaikin Money Flow (CMF) indicator dropped below the zero line and continued trending lower.

Analysts identified $69,000 as the immediate support level and $64,000-$65,000 as the major support zone. A breakdown below $69,000 could open the door for a deeper correction toward the mid-$60,000 region. Immediate resistance stands at $73,800, with major resistance at $75,800.

Liquidations and Institutional Outflows Drive Selloff

Bitcoin’s crash wiped out nearly $800 million in leveraged positions over 24 hours, with long positions accounting for roughly $700 million of the liquidation wave. Bitcoin-linked positions alone saw $500 million wiped out, making up the largest portion of total losses across the crypto market.

Crypto investment products recorded their second-largest weekly outflow of 2026, with investors pulling $1.67 billion from digital asset funds by the end of May. The United States accounted for nearly all withdrawals, with $1.63 billion pulled from U.S. crypto funds. Geopolitical tensions surrounding Iran and a broader risk-off sentiment weighed on markets alongside Strategy’s sale.

Final Thoughts

Bitcoin’s break below $70,000 reflects institutional selling pressure and deteriorating technical structure. With $3.5 billion in ETF outflows over three weeks and $800 million in liquidations, the $69,000 support level is now critical to defend against further downside.

FAQs

Disclaimer:

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.