Foreign media reports indicate that Bitcoin weakened significantly in early June, potentially marking its worst weekly performance since February. The report attributes this decline primarily to continued outflows from Bitcoin ETFs, a weakening of market drivers, and a shift of funds towards popular assets such as AI infrastructure and semiconductors.
ETFs continue to see outflows
According to SoSoValue data, the spot Bitcoin ETF recorded its 13th consecutive trading day of net outflows on Wednesday, marking its longest losing streak. The total assets of the related fund have fallen from $107.8 billion on May 14th to $82.8 billion.
Citigroup analyst Alex Saunders believes that ETF inflows are a key variable driving Bitcoin's price. The report also mentions that the weakening prospects for the CLARITY Act, the US cryptocurrency market structure bill, have also dampened some investors' expectations for further catalysts.
Strategy sold 32 bitcoins.
The report points out that one of the immediate triggers for the market this week was Michael Saylor's Strategy's disclosure that it had sold 32 bitcoins, raising approximately $2.5 million to pay preferred stock dividends. This is the company's first sale of bitcoins since 2022, and only the second such sale in its history.
Although this sale represents only a very small percentage of his holdings, the market is paying closer attention to the changing signals. Saylor had previously emphasized that he would not sell Bitcoin, and now that his Bitcoin treasury has been used to meet financing and dividend arrangements, it has dampened the confidence of some investors. Subsequent liquidation of leveraged long positions further amplified the decline; CoinGlass data shows that long liquidations reached $594 million within 24 hours.
Incremental funds are shifting towards AI trading.
The report argues that Bitcoin's correlation with several common narratives has weakened over the past few months. It has not clearly demonstrated "digital gold" attributes, nor has it exhibited stable inflation hedging characteristics, and its synchronicity with high-beta tech stocks is also weak.
In contrast, US stocks continued their upward trend, with the chip sector and AI infrastructure deals attracting more new funds. The report also noted rising market interest in private technology companies such as SpaceX and Anthropic. In this environment, Bitcoin is losing its appeal to speculative capital.
Pay attention to portfolio updates next Monday.
The report points out that the market will be watching Strategy's latest holdings update next Monday to determine whether the company continued buying, switched to selling, or remained unchanged this week. If the company resumes large-scale buying, it could help stabilize sentiment; if it continues selling or suspends buying, the market may worry about a weakening of this important source of demand.
Additional information:The report also cited institutional opinions, stating that if Strategy quickly resumes buying after selling, the market may see it as a sign of a temporary stabilization; however, some analysts still use Bitcoin's four-year cycle as a reference, believing that if the weakness continues, the low point may still need to wait for a longer period of time.
