Bitcoin markets took another hit. Bloomberg data shows U.S. spot Bitcoin ETFs have suffered net outflows for 11 consecutive trading days, the longest streak on record, with investors pulling out nearly $3.5 billion. Year-to-date net inflows have turned negative for the first time in 2025, sliding to about $55.66 billion from a peak of $57 billion early this year. Bitcoin tumbled below the closely watched $70,000 level during the day for the first time since April 7. The sell-off stems from a confluence of headwinds: massive ETF outflows, Strategy’s first-ever Bitcoin sale, and macroeconomic uncertainty.
ETF Outflow Streak Hits 11 Days: $3.5B Gone, AUM Drops $10B
Data from SoSoValue shows the outflow wave started on May 15, initially reported by CoinShares as nine consecutive days of $2.8 billion outflows, which quickly widened to 11 days and $3.5 billion. Assets under management (AUM) fell from $104 billion before the outflow to about $94 billion, a $10 billion loss. Galaxy Research analysts had labeled the early stage a "real directional recalibration" rather than a hedging adjustment — a view now validated. CoinShares noted it is the third consecutive week of outflows for digital asset investment products, mirroring the five-week outflow streak seen in January-February.
Strategy Sells 32 BTC: Symbolic Blow More Than Financial
On the same timeline, Michael Saylor’s Strategy (formerly MicroStrategy) sold 32 Bitcoins for roughly $2.5 million between May 26 and 31, its first sale since December 2022. MSTR stock dropped over 5% in pre-market trading. The 32 BTC represent just 0.0038% of Strategy’s total holdings of 843,706 BTC, a negligible amount financially, but the psychological impact was severe. The company had long been seen as a "buy-only" Bitcoin bull icon. Documents state the sale was to cover preferred stock dividends. CEO Phong Le previously said the company would sell at cost (around $75,700) to avoid tax implications. However, Arca’s CIO had warned last month that Strategy’s $15 billion preferred stock structure was "out of control," putting the odds of a 2025 sale above 90%.
Macro Headwinds and Capital Rotation: Fed, AI Craze
Beyond ETFs and Strategy, the macro backdrop remains unfavorable. The Fed keeps rates high, with markets expecting a hold in June. Geopolitical tensions in the Middle East and upcoming U.S. nonfarm payroll data are driving institutional caution. More critically, the S&P 500 has been hitting record highs since May 26, closing Monday at 7,620. Capital is rotating out of crypto into AI and semiconductor stocks — Micron surged over 200% in a single quarter after presidential endorsement. Galaxy Research called this a "directional recalibration," not short-term risk-off. At press time, Bitcoin trades at $69,500, down about 3% on the day. The Crypto Fear & Greed Index has fallen to 23 (extreme fear), and RSI indicates oversold conditions. Analysts warn that if BTC fails to quickly reclaim $70K, the next support could be $60K.