Bitcoin dropped more than 5% in 24 hours, falling from above $70,000 to around $66,700 on Thursday. The sell-off was driven by a cascade of on-chain events and fund flows — the defunct exchange Mt. Gox moved roughly $740 million worth of BTC to an exchange, Tether liquidated 204 BTC from its reserves, and bitcoin ETFs posted their 12th straight day of net outflows. At the same time, Michael Saylor's Strategy sold its first bitcoin since 2022, adding to the pressure.
The Mt. Gox Overhang
Defunct exchange Mt. Gox transferred 10,422 BTC — worth about $740 million at current prices — to an unidentified exchange. The move is part of the long-running creditor repayment process, but it spooked traders who saw it as a potential precursor to selling. Market participants have been watching Mt. Gox wallets closely since last year's earlier distributions, and this transfer reignited concerns about a supply glut.
Tether and Strategy Trim Positions
Stablecoin issuer Tether sent 204 BTC from its reserve wallet to the Bitfinex exchange. The company has previously said it holds bitcoin as part of its reserve portfolio, and periodic small sales are part of its treasury management. Separately, Michael Saylor's Strategy (formerly MicroStrategy) sold 32 BTC — its first bitcoin sale since 2022. The sale is tiny relative to the firm's roughly 226,000 BTC stash, but the symbolism of Saylor selling even a handful of coins rattled market sentiment that had already been fragile.
ETF Outflows Hit a 12-Day Streak
Spot bitcoin ETFs recorded a net outflow of $519 million on May 27 alone, and have not seen a single day of positive inflows since late May. The 12-day streak is the longest since the initial launch frenzy cooled last year. Institutional demand, which had been a steady buyer through the first quarter, appears to have evaporated as macro uncertainty rises. The U.S.-Iran military escalation and upcoming blockbuster IPOs — including SpaceX — are pulling capital out of risk assets broadly.
Analysts Eye $60,000 as Next Stop
Crypto analyst Chiefy predicted a relief bounce in the near term followed by a further leg down to $60,000. Analyst Tony offered a similar forecast: a short-term bounce before a drop to that round number. Neither sees a quick V-shaped recovery. With supply-side events piling up and macro headwinds not letting up, the path of least resistance for bitcoin looks lower — at least until the ETF flows turn or the geopolitical picture clears.
