Bitcoin fell to $61,463.22 on June 4, dropping 8% in 24 hours and slipping below the $62,000 psychological threshold. The selloff comes as MicroStrategy executed its first net Bitcoin reduction in years, selling 32 coins, and U.S. spot Bitcoin ETFs extended a record streak of daily outflows. The cryptocurrency now sits 51% below its October 2025 all-time high of $126,277.
Why Bitcoin broke $62,000
The move below a round number that had held as support for weeks reflects a broader risk-off mood. Escalating U.S.-Iran military tensions in the Middle East pushed traders toward cash and Treasuries, knocking Bitcoin along with equities. The 8% intraday plunge wasn't limited to crypto—the S&P 500 also slid, but Bitcoin's decline was sharper given its thin liquidity on weekends.
MicroStrategy's first sale in years
MicroStrategy offloaded 32 Bitcoin between May 26 and May 31, generating $2.5 million at an average price of $77,135 per coin. It's the company's first net reduction of its stash in years, and the reason is a dividend obligation. The firm needed cash to fund an 11.5% variable dividend on its STRC preferred shares. Investors didn't love the move—MicroStrategy's stock dropped 6% on the news.
The sale is small relative to MicroStrategy's total holdings—roughly 0.1% of its Bitcoin hoard—but the psychological signal is clear. After years of buying, the company is now selling to meet capital demands.
ETF outflows hit a new 2026 low
U.S. spot Bitcoin ETFs have now recorded 11 to 12 consecutive days of net outflows, totaling $3.45 billion. May 2026 alone saw $2.30 billion leave the funds, making it the worst monthly performance of the year. The week ending May 29 accounted for $1.42 billion of that—the third-largest weekly withdrawal on record.
The outflows are broad-based, hitting all major ETF issuers. Analysts point to a combination of profit-taking from earlier gains and a shift in investor appetite toward other sectors.
Where the money is going
Capital isn't just leaving crypto—it's heading into AI-related equities and speculative IPOs from companies like OpenAI and SpaceX. Market rotation out of Bitcoin and into these names has been visible for weeks. With NVIDIA and other AI stocks still climbing, the opportunity cost of holding Bitcoin during this drawdown is becoming harder for institutional investors to ignore.
Whether the selling continues into June depends partly on the Middle East situation and partly on whether ETF outflows can slow. MicroStrategy's next dividend payment is due in July, but the company hasn't signaled further sales. For now, Bitcoin is testing a level that, if lost, could open a slide toward $58,000.
