Why is Bitcoin price down today? Strategy's BTC sale, Mt. Gox wallet transfers, ETF outflows, and liquidations push Bitcoin below $70,000.
Bitcoin started the week under heavy pressure as the world's largest cryptocurrency dropped below the crucial $70,000 level. The sudden decline erased billions from the crypto market and left traders searching for answers behind the latest sell-off.
Over the last 24 hours, Bitcoin fell more than 4%, sliding from around $72,800 to an intraday low near $69,700. The drop comes as several bearish developments hit the market at the same time, including a rare Bitcoin sale by Strategy, a large wallet movement from Mt. Gox, and continued outflows from U.S. spot Bitcoin ETFs.
One of the biggest headlines came from Strategy, the company formerly known as MicroStrategy and currently the world's largest corporate Bitcoin holder. The company disclosed that it sold 32 Bitcoin between May 26 and May 31 for approximately $2.5 million.
On paper, the sale was relatively small. The company still owns more than 843,000 BTC worth around $60 billion. However, the transaction caught the market's attention because it marked Strategy's first Bitcoin sale since December 2022.
For years, Executive Chairman Michael Saylor has built a reputation around his unwavering belief in Bitcoin, repeatedly telling investors that the company intended to hold its Bitcoin for the long term.
As a result, even a small sale sparked discussions about whether the company could become more flexible with its Bitcoin strategy moving forward.
Another major factor behind Bitcoin's decline came from the bankrupt crypto exchange Mt. Gox.
Blockchain data revealed that the exchange moved 10,422 BTC worth approximately $739 million from cold wallets. The transferred Bitcoin was split between a known hot wallet and another address that has not yet moved the funds further.
Although no selling activity has been confirmed, the transaction immediately raised concerns among traders. Many market participants worry that creditors receiving Bitcoin repayments may decide to sell part of their holdings after waiting more than a decade to recover funds.
The latest transfer marked Mt. Gox's first major on-chain movement in nearly two months, bringing old concerns back into focus.
Institutional demand has also weakened considerably in recent weeks. According to market data, U.S. spot Bitcoin ETFs have now recorded eleven consecutive trading days of net outflows.
During that period, nearly $3 billion has left the ETF sector. On June 1 alone, total outflows reached approximately $483.8 million. BlackRock's IBIT accounted for nearly $440 million of those withdrawals, making it one of the largest single-day outflow events recorded this year.
The continued withdrawals suggest institutional investors remain cautious despite Bitcoin's long-term outlook.
ETF demand has been one of Bitcoin's strongest support pillars throughout recent market cycles, making the current outflow trend an important development for traders.
As Bitcoin broke below key support levels, leveraged traders were hit hard. Data from CoinGlass shows that more than 155,000 traders were liquidated over the past 24 hours.
Total liquidations reached approximately $798 million across the crypto market. Bitcoin alone accounted for around $458 million in long liquidations. The largest single liquidation occurred on Binance and was valued at nearly $24 million.
These forced liquidations added extra selling pressure and accelerated Bitcoin's decline below the $70,000 mark.
Technical analysts are now closely watching Bitcoin's next support zones. Several traders noted that Bitcoin has broken below a bear flag pattern that had been developing in recent weeks.
According to Altcoin Daily, a worst-case scenario could see Bitcoin fall toward the $50,000 region if a full correction unfolds.
However, many analysts believe a more realistic downside target sits closer to Bitcoin's 200-week moving average near $62,000.
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