Bitcoin slipped below $66,000 on Wednesday, extending a selloff that wiped out roughly $160 billion in market value this week. The drop comes as investors pulled nearly $4 billion from US-listed Bitcoin ETFs over the past 12 sessions — a record streak of consecutive outflows, according to Bloomberg data.
The $2.5M sale that shook the narrative
Strategy, the corporate bitcoin holder formerly known as MicroStrategy, sold roughly $2.5 million worth of Bitcoin, reducing its hoard by 32 tokens out of 843,706 coins. Analysts called the sale 'financially trivial' and a 'rounding error' relative to the firm's stake. But they noted the psychological impact on the 'never sell' narrative that Strategy's founder, Michael Saylor, has championed for years. The amount is tiny — less than 0.004% of holdings — but the fact that the company sold any at all rattled some traders already on edge.
ETFs bleed as capital rotates to AI
The broader market is feeling the pain. Over the past 12 months, the Nasdaq 100 rose 42% while Bitcoin fell 37% and now sits 48% below its peak. US equities and tech stocks are making new highs amid a capital rotation from crypto to AI stocks, according to Carney Mak of FXHB Asset Management. Mak said AI offers a more favorable risk-reward setup compared to digital assets, encouraging portfolio rebalancing. The data backs him up: Bitcoin ETF outflows have stretched for 12 straight sessions, a record since the products launched in early 2024.
Bitcoin's week in numbers
At the time of writing, Bitcoin traded at $65,721, down nearly 2% on Wednesday and extending a 12% retracement over the previous seven days. The selloff has erased about $160 billion from the total crypto market cap this week alone, per Bloomberg. Strategy's sale may be a rounding error for its balance sheet, but for a market already bleeding from ETF exits and a competing AI narrative, the timing isn't great.
For now, the capital is flowing elsewhere. AI stocks keep hitting new highs, and the rotation out of crypto shows no sign of slowing.
