Bitcoin briefly fell below $66,000 late Tuesday before recovering to around $66,549 by Wednesday morning, down more than 6% over 24 hours, as heavy exchange-traded fund (ETF) outflows and broad risk aversion hit the cryptocurrency market. Ethereum tracked the move lower with a similar 24‑hour drop to roughly $1,851.
Other major tokens also weakened, with Ethereum down 7.1% on Tuesday to $1,849, BNB off 7.2% to $635, XRP lower by 4.8%, and Solana sliding 7.7%.
Etf outflows deepen risk-off mood
U.S. spot bitcoin ETFs recorded $519.2 million in net outflows on Tuesday, the twelfth consecutive session of withdrawals. One recent session saw total crypto ETF outflows exceed $522 million, underscoring persistent risk-off positioning among large market participants.
Spot Ethereum funds posted $90.2 million in redemptions on Tuesday, extending their streak of net outflows to sixteen days.
John of Zeus Research said the combination of institutional ETF outflows, aggressive long liquidations and thinner liquidity has been central to the downturn. He added that the unwinding of leveraged positions has amplified selling pressure, triggering cascades of forced selling that accelerated the decline in leading digital assets.
Geopolitics and oil rally tighten financial conditions
Adziima of Bitrue Research Institute pointed to recent airstrikes in the Middle East as another source of pressure on risk assets, noting that the escalation pushed oil prices higher and encouraged a broader tilt toward caution in global markets.
WTI crude futures rose 1.13% to $94.82 per barrel, holding near $95 on Wednesday, while Brent futures gained 1.04% to $97.07. Higher energy prices can stoke inflation concerns and strengthen expectations of tighter financial conditions, typically a negative backdrop for speculative assets such as cryptocurrencies.
Asian markets show uneven response
Asian equity benchmarks delivered a mixed performance on Wednesday, reflecting divergent local drivers despite shared global headwinds.
Japan’s Nikkei 225 jumped nearly 3% in intraday trade to a fresh record high, supported in part by expectations of continued policy support. China’s CSI 300 index advanced more than 1.5%. By contrast, Hong Kong’s Hang Seng index fell about 1.7%, highlighting lingering regional concerns and selective risk aversion.
Strategy bitcoin sale unsettles sentiment
Beyond macro and geopolitical pressures, the market is still digesting a rare bitcoin sale by Strategy, led by Saylor. The company reported that it sold 32 BTC for roughly $2.5 million between May 26 and May 31, its first disposal since December 2022.
Although the amount is negligible relative to its total holdings of 843,706 BTC, the move breaks from its long‑standing pattern of only accumulating bitcoin. Analysts said that shift in behavior has introduced a new source of uncertainty for traders who have treated the company as a symbol of unbroken, long‑term bitcoin commitment.
The firm’s shares on Nasdaq dropped 9.15% on Tuesday to close at $136.08, leaving them down about 23% over the past month. Chung of Presto Research said the sale became a touchstone for those trying to explain bitcoin’s latest 24‑hour underperformance, even though the company indicated the sale was aimed at funding preferred stock distributions rather than signaling a change in its strategic stance on bitcoin.
Outlook: pressure could linger, but path to stabilization seen
Market participants remain split on the near‑term trajectory for digital assets:
- Some analysts expect weakness to persist through June, citing ongoing ETF outflows and a fragile global risk backdrop.
- Others argue prices could stabilize within one to two weeks if geopolitical tensions ease and negative headlines subside, potentially allowing liquidity conditions to normalize and leveraged positioning to reset.
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