Bitcoin dropped below $68,000 on Tuesday, hitting its lowest level since early April, as a convergence of events rattled markets. The selloff, which has seen Bitcoin lose 13% in a week, was driven by Strategy’s symbolic sale of 32 Bitcoin, record ETF outflows, fresh Mt. Gox movements, and escalating geopolitical tensions in the Middle East.
Strategy’s symbolic sale
Between May 26 and May 31, Strategy (formerly MicroStrategy) sold 32 Bitcoin — its first net reduction in holdings in three and a half years. The sale generated roughly $2.5 million. But that 32 BTC is just 0.004% of Strategy’s total pile of 843,706 Bitcoin. The company’s stock (MSTR) fell nearly 10% on the day, alongside Strive (ASST), as investors reassessed the premium these stocks trade at over their underlying Bitcoin exposure.
ETF outflows in perspective
U.S. spot Bitcoin ETFs recorded roughly $3.45 billion in withdrawals over 11 consecutive trading sessions through late May — the largest monthly ETF exodus of 2026. Bloomberg Intelligence analyst Eric Balchunas said $3 billion in outflows from a $100 billion asset base is “totally meaningless” relative to normal ETF flow patterns. Cumulative net flows since launch remain near $57 billion.
Mt. Gox moves again
Mt. Gox shifted approximately $739 million worth of Bitcoin from its cold wallets on Tuesday, the first on-chain movement in over two months. The repayment deadline for remaining creditors is October 31, 2026. Any large distribution before that date could push more BTC into the market, adding to selling pressure.
Geopolitical backdrop
Iran suspended nuclear negotiations with the U.S. in response to Israel’s military operations in Lebanon, raising the risk of a broader regional conflict. President Trump claimed talks are still progressing. The uncertainty added a layer of macro anxiety to an already nervous crypto market. The timing isn't great: a mix of a visible corporate sale, persistent ETF redemptions, old exchange wallets waking up, and war jitters rarely ends well for risk assets.
