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Today, BTC is posting its lowest prices since April 7th (nearly 2 months ago), and is down 2.2% so far today.
Yesterday, it fell 3.1% - its biggest one-day drop in over 2 months (since March 27th's 4.3% drop).
Prior to yesterday, BTC had been testing support around its 50-day simple moving average (SMA).
Strategy (formerly known as MicroStrategy) is the world's largest corporate Bitcoin holder.
Yesterday (Mon, June 1), Strategy disclosed that it sold about 32 BTC, worth some US$2.5 million last week.
This marked Strategy's first BTC sale since 2022!
To be clear, Strategy's Chairman and Co-founder, Michael Saylor, had already given markets a heads up just a few weeks ago — during the company's most recent earnings call — about a potential BTC sale before end-2026.
The apparent aim is to sell BTC to fund distributions on its preferred stock.
Also, the amount sold last week is tiny compared to its ~$60 billion BTC stash still in hand.
But the symbolism was huge, and the announcement was enough to deliver a psychological dent into crypto sentiment.
Institutional investors are pulling back fast.
Spot Bitcoin ETFs have now seen 11 consecutive days of outflows, including a single-day exodus of $483.8 million on Monday — with BlackRock's IBIT alone accounting for $440.3 million of that.
May's total ETF outflows hit $2.4 billion, the worst month of 2026.
In other words ...
ETF outflows began a couple of weeks ago, with Strategy's announcement then adding fuel to the selloff.
Furthermore, US stocks punching up to new record highs may be drawing funds away from cryptos.
A potential ramp-up in US-Iran tensions are rattling risk assets broadly.
Yesterday (Mon, June 1), the Tasmin news agency reported that Iran will stop communicating with the US on peace talks. That report sent Brent soaring back briefly to $100/bbl, while shaking risk sentiment.
DECODE: Higher oil prices fuel fears that global inflation will rise faster which may then force major central banks to raise interest rates. Such an environment (higher inflation + higher rates) makes investors less willing to hold speculative assets like crypto.
BTC has now fallen about:
BTC's latest drop means that the world's biggest crypto is now seeing a technical correction (down over 10% from recent high).
Also, it has erased more than half of the 38% advance it saw during the 3 months between early-Feb through early-May.
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DISCLAIMER:
This article is provided for general information and reflects the author's views only. It does not constitute investment advice, nor an offer or solicitation to buy or sell any financial instruments or digital assets. Your ability to access or use any products or services mentioned may be subject to the laws and regulatory requirements of your jurisdiction.