Bitcoin Falls Below $70K on ETF Outflows and Strategy Sale
Bitcoin, having faced challenges due to an unexpected sell-off by BlackRock, has fallen below the significant threshold of $70,000 per bitcoin. The collapse in the price of bitcoin, which has fallen nearly 50% from its peak of $126,000 per bitcoin achieved in October of the previous year, has prompted billionaire Mark Cuban to change his stance on cryptocurrency. Now, as “insane” Federal Reserve money printing could be poised to catalyse a bitcoin price rebound, traders are prepared for “deeper correction waves” following Michael Saylor’s strategy that took the market by surprise with a bitcoin sale. “The bitcoin price is exhibiting indications of fragility, descending beneath the $70,000 threshold,” analysts noted, highlighting significant supply pressure from purchasers within the last six to twelve months as “a substantial obstacle” to any prospective recovery. “After enduring losses through the crash at the beginning of the year, this group is opting for a conservative strategy by increasing supply on exchanges as bitcoin rebounded to the $80,000 range, which has introduced potential selling pressure leading to a subsequent price adjustment downward. This exchange inflow volume requires adequate absorption; failing to do so may result in bitcoin encountering more significant correction waves.”
Strategy has adhered to his May commitment to divest some bitcoin, liquidating 32 bitcoin valued at $2.5 million. Saylor asserted that this move is integral to a strategy aimed at transforming the company’s contentious, high-yield monthly dividend into what he describes as “the best credit instrument in the world.” The announcement resulted in a 6% decline in the company’s stock yesterday, with an additional 3% drop observed in the pre-market this morning. Since its peak in summer 2025, Strategy’s share price has decreased by more than 60%. Strategy continues to hold 843,706 bitcoin, bought at an average purchase price of $75,699, making it the largest institutional holder of the cryptocurrency, rivalled only by the bitcoin exchange-traded fund giant BlackRock, which holds almost 800,000 bitcoin on behalf of investors. Strategy raised the possibility of selling some bitcoin last month to meet dividend payment commitments and to reassure the market that there were buyers available should the company need to liquidate bitcoin in the future. “We will probably sell some bitcoin to pay a dividend just to inoculate the market and send the message that we did it,” Saylor said in May during the company’s first quarter earnings call, adding the company planned to “buy bitcoin with credit … let it appreciate, and then … sell bitcoin to pay the dividend.”
At the time, Saylor referred to the plan as “a big nothing burger from an economic point of view,” dismissing concerns that Strategy’s sale of bitcoin could lead to a price crash. He suggested that any sale would likely be followed by a significant bitcoin purchase, similar to 2022 when the company sold approximately 700 bitcoin to realise tax losses that could offset future gains, subsequently buying 800 bitcoin just a few days later. “Bitcoin weakness turned Strategy into the market’s stress test,” analysts wrote. Bitcoin experienced a decline of approximately 5.5% over the week, with the narrative shifting from theoretical considerations to tangible developments following Strategy’s sale of 32 bitcoin. The market has come to understand that Strategy is no longer perceived solely as a one-way accumulation vehicle. The longstanding adage of ‘never sell’ has now been rendered obsolete in practice, transcending mere rhetoric in conference calls. The inquiry transitions from the capability of Strategy to generate sales to the manner in which the market evaluates a treasury firm that possesses the ability to convert collateral into supply when obligations or balance-sheet management necessitate such actions. Optionality from the largest corporate bitcoin holder contributes to the process of price discovery.
Other observers of bitcoin’s price dynamics and market analysts express concerns that bitcoin may be on the verge of experiencing another significant price decline. “Momentum is not on bitcoin’s side this week,” Nic Puckrin stated. “With $2.8 billion in cumulative outflows from bitcoin ETFs and Michael Saylor selling 32 bitcoin last week, there is excessive downward pressure on the price.” Puckrin pointed to bitcoin falling even as the U.S. stock market, “driven by exuberance around AI, is continuing to hit new highs.” This indicates that bitcoin is increasingly influenced by sentiment unique to the cryptocurrency market, which is currently nearing its lowest point. Puckrin warned that bitcoin “now needs to hold above $70,000 to avoid a more significant slide lower,” adding that the ongoing U.S. war in Iran and SpaceX’s upcoming initial public offering are drags on the bitcoin price as they “draw speculative capital away from other risky assets. Overall, the current conditions do not favour a positive outlook for the bitcoin price in the near term.”
