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Analysis: Bitcoin ETF outflows, Strategy Liquidation, and Deteriorating Macroeconomic Environment were factors that led to a 14% plunge in Bitcoin price this week

2026.06.04 22:15:20

June 4: Bitcoin’s weekly sell-off has deepened by roughly 14%, pushing the crypto’s price to around $62,400 as of Thursday. The slump is fueled by a confluence of factors, including a rare Bitcoin (BTC) sale from asset manager Strategy, persistent outflows from U.S. Bitcoin spot exchange-traded funds (ETFs), and a deteriorating macroeconomic backdrop. Strategy sold 32 BTC at the end of May to cover preferred stock dividend payments. While the transaction’s size is small, QCP Group notes it carries outsized symbolic weight: Strategy has long been viewed by markets as a structural Bitcoin buyer, and its years-long "never sell" mantra has been a key pillar supporting institutional investor sentiment. On the ETF front, U.S. Bitcoin spot funds have seen three consecutive weeks of net outflows, with total redemptions hitting $4.21 billion—marking the largest institutional de-risking cycle since 2026. Glassnode data shows these ETFs have an average purchase price of roughly $83,000, and a recent Bitcoin rebound failed to break through that level, leaving average ETF holders back in unrealized loss territory. On-chain metrics also point to a frayed market structure: short-term Bitcoin holders’ cost basis has fallen to $76,400, dipping below the true market average for the first time since January 2022—a sign the market is approaching the later stages of a bear cycle. Still, there’s a glimmer of contrarian sentiment: Bitwise’s European Head of Research Andre Dragosch says the firm’s internal crypto sentiment index just triggered a contrarian buy signal, with sentiment hitting its most pessimistic level since the market surrendered on Feb. 5. He identifies two key support levels to watch if the pullback is near its end: Bitcoin’s 200-week moving average around $61,000, and its realized price roughly $56,000. The options market remains cautious, however. QCP Group explains that volatility signals don’t signal "buying the dip"—instead, they reflect "buying insurance against a downturn." Glassnode adds that until spot demand rebounds and ETF investors return to profitable positions, Bitcoin will likely face further pressure: if it fails to reclaim the $67,000 to $68,000 range, the path of least resistance in the near term is consolidation or additional downside.
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