Updated
Updated · CNBC · Jun 4
Bitcoin Drops 13% as Strategy Sells 32 BTC and ETF Outflows Hit 13 Days
Updated
Updated · CNBC · Jun 4

Bitcoin Drops 13% as Strategy Sells 32 BTC and ETF Outflows Hit 13 Days

3 articles · Updated · CNBC · Jun 4

Summary

  • Bitcoin is down 13% this week—its worst stretch since February—as investors cut risk after Strategy disclosed a 32-BTC sale and spot ETFs logged a record 13th straight day of net outflows.
  • The selloff accelerated after Michael Saylor's company broke with its long-held 'never sell' stance to raise about $2.5 million for preferred dividend payments, helping trigger $594 million in 24-hour long liquidations.
  • ETF assets have shrunk to $82.8 billion from $107.8 billion on May 14, and Citi said those flows explain about 45% of weekly bitcoin return variation, making fading fund demand a key drag on price.
  • Bitcoin is also losing capital to hotter trades such as semiconductors and private-market AI names, while a hoped-for U.S. catalyst—the CLARITY Act market-structure bill—appears to be slipping further out of reach.
  • Monday's disclosure of whether Strategy bought back bitcoin this week could shape near-term sentiment; without that support, some analysts still see the four-year cycle pointing to a bottom below $40,000 later this year.

Insights

With capital fleeing to AI and chips, what is Bitcoin’s new core purpose in a market that has moved on?
Michael Saylor's company just sold Bitcoin. Has the 'never sell' philosophy that fueled the last bull run finally died?
As AI traders amplify volatility, is Bitcoin's historical four-year price cycle model now officially broken?