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Bitcoin fell to its lowest level since February, driven by a $4 billion outflow streak from U.S. spot ETFs and a small sale by MicroStrategy, sparking debate
Bitcoin dropped below $63,000 on Thursday, the lowest price since late February, as U.S. spot Bitcoin ETFs recorded a 13‑day streak of net outflows exceeding $4 billion [1]. The sell‑off also triggered two technical signals that have historically coincided with bear‑market bottoms, prompting analysts to look at the low‑$60,000 region for possible support [1].
Key takeaways
U.S.-listed spot Bitcoin ETFs have posted net outflows on every trading day from May 14 through June 4, marking a 13‑day streak—the longest continuous outflow period in the products’ two‑and‑a‑half‑year history [1]. Weekly outflows peaked at $1.42 billion for the week ending May 29, the third‑worst weekly total since the funds launched, and a single‑day outflow of $483.8 million occurred on June 2 [1]. When ETF providers receive redemption requests, they must sell the underlying Bitcoin, injecting fresh supply into the spot market and eroding the institutional buying cushion that supported prices throughout 2025 [1].
Amid this backdrop, Strategy (formerly MicroStrategy) disclosed an 8‑K filing on June 1 showing it had sold 32 Bitcoin between May 26 and May 31 at an average price of $77,135, generating about $2.5 million in proceeds [1]. Although the sale represented a minuscule fraction of the company’s 843,700‑coin treasury, the move contradicted founder Michael Saylor’s long‑standing pledge not to sell, prompting a roughly 6 % drop in Strategy’s shares and a further dip in Bitcoin toward the $71,000 range [1].
Santiment’s analysts view the ongoing ETF outflows as a “contrarian” buying signal, noting that retail‑driven ETF redemptions have historically coincided with periods where “patient accumulation” outweighs panic [2]. The platform points to the $1.26 billion of net outflows over the past five days as evidence that smart‑money investors may be positioning for a rebound, contrasting with the broader market narrative that treats consecutive outflows as bearish [2].
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AI-assisted synthesis by the TrendWatcher Editorial Desk · sourced from 2 outlets · Jun 12, 2026 · How we report
Analysts note the absence of panic capitulation and declining liquidity in both spot and futures markets, suggesting that the market has not yet experienced the final, intense selling phase typical of a bottom.
Bitcoin's price is being pressured by diminishing ETF flows, waning investor interest, and competition from other investment narratives like AI and traditional finance products.
Bear market price targets for Bitcoin range from as low as $38,000, according to Stifel, to approximately $66,800, according to Peter Brandt.
Other market observers remain cautious. Compass Point analyst Ed Engel highlighted that 26 % of Bitcoin sold in the last month came from investors who originally bought above $90,000, suggesting that the last “top‑buyer” cohort is finally capitulating—a signal that the bear market could be in its late stages [1]. Additionally, Bitcoin briefly touched its 200‑week moving average around $61,300, and for the first time in the current cycle the amount of Bitcoin held at a loss exceeded the amount held in profit, a pattern that has preceded previous bottoms in 2015, 2019, 2020, and 2022 [1].
The convergence of record ETF outflows, a rare top‑buyer capitulation, and historic technical markers places the market at a pivotal juncture. If Bitcoin holds above the low‑$60,000 zone, it could signal the end of the current downtrend and set the stage for a gradual recovery. Conversely, a break below this support could reopen the path toward the February low of $60,000 or even lower levels, as warned by Trade Nation analyst David Morrison [1]. The ongoing debate—whether the outflows represent a market reset ripe for accumulation or a warning of further weakness—highlights the uncertainty facing investors as the crypto asset navigates its deepest correction since early 2024.