Bitcoin (BTC) sank to its lowest level since October 2024 on Friday, dropping to $59,073 as macroeconomic pressures and sustained outflows from Bitcoin ETFs intensified the latest downturn.
Meanwhile, Strategy executive chairman Michael Saylor hinted in an X post that the company could make another BTC acquisition, a week after it sold 32 BTC between May 26 and May 31, only the second time in its history.
Bitcoin (BTC) Rebounds but Momentum Remains Weak
Bitcoin (BTC) registered a sharp rebound on Sunday, reclaiming $60,000 after falling to $59,073 on Friday. The rebound comes after a sobering week in which the cryptocurrency declined over 15%.
The downturn was primarily driven by capital rotation, macroeconomic conditions, and ETF outflows. ETFs started June with outflows of $483 million, followed by $519 million on Tuesday. Outflows continued on Wednesday with $396 million before the streak was broken by a marginal inflow of $3.20 million on Thursday. However, selling resumed on Friday with Bitcoin ETFs recording $325 million in outflows. Market watchers believe the ETF selloff and capital rotation by institutional investors into gold and AI stocks has drained liquidity from the sector.
There are also doubts about the bounce’s longevity as institutional investors continue to sell. Jean-David Péquignot, Chief Commercial Officer at Deribit, believes if BTC loses momentum again and fails to hold the $55,000–$56,000 mark, it could dip towards $50,000 or lower. A drop to these levels could pressure miners and impact their daily net revenue. Péquignot stated in an interview with CoinDesk:
“If the mid-$50Ks fail to hold, the next backstop is the $48K–$52K range. At these prices, older legacy mining rigs begin generating negative daily net revenue. A drop to this level forces inefficient miners to unplug, prompting natural supply-side capitulation and a downward reset in network difficulty. Historically, miner capitulation phases align with cyclical bottoms.”
The $60,000 level becomes crucial at this stage. BTC’s ability to stay above this level could restore confidence in investors in the short term. However, the latest escalation in hostilities between the US, Israel, and Iran could put pressure on risk assets.
Michael Saylor Hints at Bitcoin Buy
Meanwhile, Strategy executive chairman Michael Saylor hinted at a fresh Bitcoin buy, posting an acquisition chart alongside the caption “a good time to add more dots.” Saylor’s cryptic posts are often interpreted as an indication of Strategy preparing to acquire more BTC. The chart historically precedes 8-K filings that confirm the purchase. The Bitcoin treasury company currently holds 843,706 BTC, valued around $52 billion at current prices.
Saylor’s post comes days after Strategy sold 32 BTC between May 26 and May 31, marking only the second time the company has offloaded the asset. The sale saw Strategy recoup $2.5 million, with the proceeds allocated towards dividend payments on STRC.
Bitcoin (BTC) Price Analysis
Bitcoin (BTC) started the previous week in the red, dropping over 3% to $71,314. Selling pressure intensified on Tuesday as the flagship cryptocurrency dipped below $70,000, thanks to a spike in risk-off sentiment driven by ongoing geopolitical tensions, sustained ETF outflows, and structural headwinds. The recent movement of 10,422 BTC by Mt Gox to a new wallet as the repayment deadline approaches has also impacted investor sentiment.
The bloodbath continued on Wednesday as the price dipped 3.93% to $64,040. BTC registered substantial volatility on Thursday, dropping to a low of $61,309 before rebounding to $63,806. BTC fell to a low of $59,073 on Friday before recovering to reclaim $60,000 and settle at $61,032. Selling pressure declined substantially on Saturday, with BTC falling marginally to $60,850 despite an initial drop to an intraday low of $59,448. BTC recovered on Sunday as oversold conditions led to a relief rally following the brutal downturn over the past few days.
Saylor’s buy signal also improved investor sentiment, reassuring the market of Strategy’s long-term conviction in BTC despite its recent sale. However, overall market sentiment remains weak, with the price only marginally up during the ongoing session.
The RSI clearly shows the oversold conditions responsible for the bump, while the MACD shows weakening bearish momentum.
When Will the Market Recover
Bitcoin and the broader cryptocurrency market have endured a difficult year as high interest rates, macroeconomic conditions, and geopolitical tensions have eroded investor confidence. ETF outflows and capital rotation into AI and tech stocks have amplified the downturn, with BTC losing half its value since reaching an all-time high of over $126,000 in October 2025.
A recovery is likely if the geopolitical and macroeconomic situation improves. Regulatory clarity and the possibility of lower interest rates could also improve investor sentiment. Investors must focus on long-term portfolio allocations rather than panicking about short-term price movements.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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