Bitcoin Plunges 14% in a Week as Jobs Data, Record ETF Outflows, and Government Selling Converge

Bitcoin hits $59,228 low as US jobs data sparks rate hike odds, record ETF outflows, Bhutan selling, and long liquidations deepen the 14% weekly decline; technicals show extreme oversold but bearish.

The sell-off that has gripped Bitcoin over the past week broke through multiple support levels, sending the largest cryptocurrency to a 52-week low of $59,228 on June 5. A modest bounce has lifted prices to around $63,500, but the damage is severe: a 14% decline in seven days and a 21% monthly loss.

The trigger arrived from Washington. The US jobs report for May revealed 172,000 new positions — double the 88,000 economists had forecast. Markets immediately repriced the odds of further Federal Reserve tightening, with the probability of a rate hike jumping from 40% to 57%. The Nasdaq 100 shed nearly 5% in response, and Bitcoin followed suit, its correlation with risk assets tightening.

The selling pressure was compounded by a record $1.72 billion in net outflows from US spot Bitcoin ETFs in the past week — the worst since their launch. Over the five prior weeks, investors had already pulled $1.4 billion. BlackRock’s IBIT fund, a bellwether for institutional demand, suffered particularly heavy capital losses, intensifying the downward spiral. On the derivatives front, falling prices triggered over $1.28 billion in long liquidations during the first five days of June alone, following $1.6 billion in short squeezes earlier.

State-level selling added another layer of pressure. Wallets linked to the Kingdom of Bhutan transferred tokens worth roughly $45 million, continuing a pattern that has seen the country’s reserves shrink sharply this year. Meanwhile, on-chain data showed net exchange inflows averaging 10,200 Bitcoin per day on June 2 — a classic signal of elevated selling intent. Long-term investors are now sitting on 5.3 million Bitcoin in unrealized losses, a level of distress last seen during the liquidity shock of March 2020.

Market sentiment has collapsed. The Fear & Greed Index plummeted to 12, firmly in “extreme fear” territory, shedding 35 points in 30 days. The 14-day relative strength index fell to 18.2, while shorter-term RSI readings hover near 26. Both metrics suggest the asset is deeply oversold. Yet technical signals remain overwhelmingly bearish: 13 of 15 major moving averages are pointing lower, and Bitcoin trades nearly 20% below its 200-day average of $78,482.

MicroStrategy, the corporate Bitcoin accumulator, provided a symbolic twist. The company sold 32 Bitcoin worth roughly $2.5 million to cover dividend obligations — its first sale in four years. Founder Michael Saylor, who had long preached a “never sell” doctrine, quickly signaled that the move was an isolated balance-sheet adjustment and hinted at further purchases. The company’s average acquisition price stands at about $75,700, implying an unrealized loss of $11.7 billion on its holdings.

Chartists now eye the $60,000 zone as the next critical defense line. If that level holds, a relief rally toward $63,500 could unfold. A break below, however, opens the door to $57,000 and potentially the $40,000 range — a scenario some analysts say may not materialize until the fourth quarter of 2026. With funding rates still positive and long positioning stubbornly high, the risk of further cascading liquidations remains present.