Bitcoin has taken a serious hit over the past week, tumbling to $70,000 in early June—a telltale sign that the pressure from the previous sell‑off has yet to ease. The biggest weight on the market? Persistent outflows from spot BTC exchange-traded funds (ETFs). Withdrawals from crypto holdings are piling up, suggesting that large investors are locking in profits and stepping to the sidelines after months of blistering gains.
Meanwhile, the US central bank is adding its own headwinds. The Federal Reserve (Fed) has kept interest rates pinned near 3.75%, and any hope of a quick pivot has evaporated as inflation risks linger and energy prices climb. All of this spells trouble for Bitcoin. When dollar‑denominated assets offer high yields, risky bets lose their shine. And it gets even worse. Capital is now flocking to tech stocks and the artificial intelligence (AI) sector, which have left the king crypto in the dust over the past few weeks—a painful diversion of funds away from digital gold.
Then there was the blow that hurt more than its size would suggest. Strategy, i.e., the company formerly known as MicroStrategy, sold a small portion of its BTC holdings. Although the volume was trivial compared to its massive hoard, the act sent a chill through the market. After all, the firm has long been seen as the ultimate Bitcoin bull. Unsurprisingly, such a sale rattled investor confidence and put even more pressure on the price.
That said, it is not all doom and gloom. Long-term interest in Bitcoin has not vanished. Shrinking BTC reserves on exchanges and steady institutional appetite could put a floor under quotes. But for the short term, the fundamental backdrop remains modestly bearish. The road ahead looks bumpy, and the downside still has the edge.
The final recommendation:
— Sell the BTCUSD pair at the current price, targeting $65,000 within one month.
— As a safety net, place a Stop Loss order at $74,000, just above the resistance level. Therefore, if the market heads the wrong way, the position will be protected.
This content is for informational purposes only and is not intended to be investing advice.
