Bitcoin Sell-off Deepens: Record ETF Outflows, Strategy Sale, and Fed Risk
Author: Fabien Yip, Market Analyst, IG
Publication Date: June 3, 2026
Current Market Overview
Bitcoin (BTC) has recently fallen below $67,000, marking a significant decline of approximately 47% from its all-time high of nearly $126,200 reached in October 2025. This downturn is attributed to three main factors: record outflows from Bitcoin exchange-traded funds (ETFs), a notable sale by a major corporate holder, and ongoing geopolitical tensions in the Middle East.
Record ETF Outflows
US-listed spot Bitcoin ETFs have experienced a historic 12-day streak of net outflows, totaling $3.58 billion since May 15. This is the longest redemption period since the launch of these products in January 2024. Notably, BlackRock's IBIT saw a significant withdrawal of approximately $528 million on May 27, marking its second-largest daily outflow. Additionally, major firms like Jane Street and Goldman Sachs have reduced their Bitcoin ETF holdings, indicating a shift in institutional investment strategies.
Corporate Strategy Sale
On June 1, Strategy Inc disclosed its first Bitcoin sale since December 2022, selling 32 BTC at an average price of $77,135 to fund preferred stock distributions. This sale, while minor in terms of its overall holdings, raises concerns about the company's ability to meet dividend obligations without further sales, potentially impacting Bitcoin's market perception.
Geopolitical Factors
The recent sell-off was exacerbated by escalating tensions in the US-Iran conflict, leading to the liquidation of nearly $1.6 billion in leveraged long positions. The situation in the Strait of Hormuz, a critical passage for global oil supply, continues to create uncertainty and inflationary pressures that affect Bitcoin and other non-yielding assets.
Key Upcoming Events
The Federal Reserve's Federal Open Market Committee (FOMC) meeting on June 16-17 is anticipated to provide insights into future monetary policy, which could further influence risk assets like Bitcoin. Additionally, the ongoing Senate discussions regarding the Digital Asset Market Clarity Act may clarify regulatory frameworks, potentially acting as a catalyst for market recovery.
Market Predictions
Analysts are divided on Bitcoin's future, with Standard Chartered lowering its 2026 price target to $100,000, while Bernstein maintains a target of $150,000. Fundstrat's Tom Lee remains bullish with a $250,000 target, although market sentiment is mixed. Options markets reflect this uncertainty, with a balance of put and call options indicating a wide range of expectations.
Technical Analysis
Bitcoin's recent price action has broken the upward trend established since February, confirming a bearish shift. Currently, Bitcoin trades below key moving averages, with immediate support at $60,072 and resistance around $75,000. The relative strength index (RSI) indicates oversold conditions, but this alone may not be sufficient to reverse the downtrend.