Key Points
Strategy sold 32 bitcoins for $2.5 million, its first sale since December 2022.
Bitcoin fell 7.1% to $66,434, lowest level since April 8.
$1.5 billion in crypto liquidations hit markets in 24 hours, mostly long positions.
Spot Bitcoin ETFs recorded $483 million in outflows on Monday alone.
Bitcoin fell 7.1% to $66,434 on June 2, marking its lowest level since April. Strategy, the largest corporate holder of bitcoin, sold 32 coins for $2.5 million at an average price of $77,135 to fund dividend payments. The sale, disclosed in an SEC filing, triggered $1.5 billion in crypto liquidations over 24 hours and forced leveraged traders to exit positions as risk-off sentiment gripped markets.
Strategy’s Sale Signals Institutional Weakness
Strategy sold 32 bitcoins in late May, its first public sale since December 2022. The company raised $2.5 million to pay preferred stock dividends. Despite the sale, Strategy still holds 843,706 bitcoins bought at an average price of $75,699, making it the largest institutional holder. Strategy’s stock fell 5.85% on Monday after the disclosure and dropped another 3% in premarket trading.
Liquidations Cascade Across Crypto Markets
The selloff triggered $1.5 billion in crypto liquidations in 24 hours, the largest volume since February. Bitcoin accounted for $617.67 million in liquidations, with 96.24% of those being long positions. Ethereum saw $142.90 million in liquidations, with 85.56% longs. Spot Bitcoin ETFs recorded $483 million in outflows on Monday alone, extending an 11-day outflow streak.
Technical Breakdown Points to Further Weakness
Bitcoin broke below its ascending channel support, a key technical level held since February. The Relative Strength Index (RSI) plunged to 26.93, deep in oversold territory. Analysts point to $69,000 as the critical support level. If that breaks, deeper correction waves could push Bitcoin toward $64,000 to $65,000.
Broader Market Headwinds Weigh on Crypto
Bitcoin’s decline reflects multiple pressures: institutional outflows from spot ETFs, geopolitical uncertainty from U.S.-Iran tensions, and profit-taking from the AI rally that dominated markets. Analysts cite large supply pressure from holders who bought between six and 12 months ago as a barrier to recovery. Ethereum fell 4.8% to $1,921, while Solana dropped 6% to $76.
Final Thoughts
Bitcoin’s 7% drop to $66,434 signals weakening institutional conviction. With Meyka rating BTCUSD a C+ and the 12-month target at $97,867, the data points to significant downside risk before recovery. Investors should watch the $69,000 support level closely.
FAQs
Strategy sold 32 bitcoins to raise $2.5 million for preferred stock dividend payments, marking its first public sale since December 2022.
Liquidations force leveraged traders to close positions during price drops. The $1.5 billion in liquidations accelerated Bitcoin’s decline and eliminated 96% of long positions.
Analysts view $69,000 as critical support. A breakdown could trigger deeper corrections toward $64,000–$65,000 based on technical analysis patterns.
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.
About Author
Huzaifa Zahoor
Co FounderHuzaifa Zahoor is the engineer who built Meyka. He has spent years writing Python, training AI models, and building data pipelines specifically for financial markets. His technical articles have reached over 30,000 readers on Medium, so he knows how to make complex things easy to follow. If this article touches on how the tools work, he is the person who actually built them.
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