Bitcoin price has plummeted to its lowest level in months on Wednesday night, crashing below $62,000 and erasing a significant intraday loss of over $5,300 — a decline of nearly 8% in just 24 hours. This downturn comes as a perfect storm of institutional exodus, leverage liquidations, geopolitical fear, and a notable sale by Michael Saylor’s Strategy converged to undermine market confidence. At around 10:00, Bitcoin was trading at $61,463.22, having dropped from a 24-hour peak of $67,416.50 and hovering near the crucial psychological level of $60,000. The selloff wiped out weeks of cautious recovery, leaving the world’s largest cryptocurrency nearly 51% below its all-time high of $126,277, established in October 2025.
The catalyst that many analysts believe broke the market’s will was a Monday SEC filing from Strategy revealing that the firm sold 32 Bitcoin between May 26 and May 31, generating approximately $2.5 million at an average price of $77,135 per coin. While negligible relative to Strategy’s holdings of more than 818,000 BTC, the transaction marked the company’s first disclosed net reduction of its Bitcoin position in years — a striking departure from co-founder Michael Saylor’s long-standing “never sell” doctrine. The move was intended to fund dividend obligations on its STRC preferred shares, which carry an annual variable dividend of 11.5%. Nonetheless, the market responded with a visceral reaction. Bitcoin’s price swiftly dipped below $72,000 in the wake of the announcement, while Strategy’s stock experienced a nearly 6% decline on the same day.
Today, STRC exchanged at approximately $94. U.S. spot Bitcoin ETFs have experienced an unprecedented streak of net outflows, lasting 11 to 12 consecutive days, marking the longest such period since their inception. During this timeframe, total withdrawals have amounted to around $3.45 billion. The week ending May 29 recorded $1.42 billion in net outflows, representing the third-largest weekly withdrawal on record. In May, cumulative spot Bitcoin ETF outflows hit $2.30 billion, marking the worst single month of 2026. This occurred despite Bitcoin’s price declining by only 3.69%, indicating that institutions were strategically derisking at a rate that far exceeded what the price action suggested.
Beyond crypto-specific factors, Bitcoin price has experienced significant volatility due to a worsening macroeconomic environment. Escalating tensions between the U.S. and Iran, marked by military flare-ups in the Middle East, have prompted investors to seek safety. This risk-off sentiment has significantly impacted high-volatility assets, leading to a notable downturn across the board. Contributing to the bearish outlook is the compelling influence of the artificial intelligence surge. Capital that may have previously been directed towards Bitcoin is now increasingly pursuing AI-linked equities, as the upcoming IPOs of OpenAI and SpaceX draw speculative interest away.