Bitcoin Drops to Two-Month Low

Bitcoin fell more than 2% to below $70,000 in early June, hitting its lowest level since April 8, as geopolitical tensions and weakening institutional demand weighed on sentiment. Market pressure was driven by concerns over the US–Iran conflict as well as Strategy Inc.’s rare Bitcoin sale, which added to worries about corporate treasury demand. Strategy disclosed the disposal of about $2.5 million worth of Bitcoin, its first sale since late 2022, marking a symbolic break from its long-standing accumulation strategy. Investor sentiment was further undermined by sustained ETF outflows, with US spot Bitcoin ETFs recording net withdrawals for 11 consecutive sessions, totaling around $3.45–$3.5 billion. At the same time, some capital rotation appeared to be moving toward equities, as strong risk appetite in AI and semiconductor stocks coincided with crypto outflows, suggesting a shift in investor positioning across risk assets.

Bitcoin fell to around $74,000 in late May, reaching its lowest level in over five weeks, coinciding with signs of cooling institutional demand. US spot-Bitcoin ETFs have posted roughly $1 billion in net outflows so far this month, snapping a two-month streak of inflows. Bitcoin’s implied volatility also dropped to a nine-month low, as muted trading activity and waning speculative interest reduced demand for downside protection in the options market. Meanwhile, risk appetite was further dampened by ongoing Middle East uncertainty, as renewed hostilities have raised doubts over the viability of a lasting agreement despite continued negotiations. Markets also remained focused on the legislative breakthrough for the crypto market, as the Clarity Act cleared the Senate Banking Committee earlier this month, though analysts note that the bill still faces an uncertain path ahead.

Bitcoin fell to around $76,000 in mid-May, hitting its lowest level in more than two weeks as uncertainty surrounding the US-Iran war weighed on risk appetite. President Donald Trump continued to adopt a tougher stance toward Tehran as talks between Washington and Iran remained stalled, while reports emerged that energy facilities in the Persian Gulf were struck over the weekend. The developments fueled fears of stronger inflation and triggered broad risk aversion across financial markets. Consequently, more than $1 billion flowed out of US-listed spot Bitcoin ETFs last week, marking the first weekly outflow above that level since late January. Limiting further losses, a Senate panel recently approved the Clarity Act, the first broad piece of legislation aimed at regulating the crypto industry in the US. The move was seen as a positive step toward clearer regulatory frameworks for digital assets, potentially supporting institutional participation and long-term adoption.