Bitcoin Reels as Record ETF Outflows Converge with MicroStrategy's First Sale in Three Years

Bitcoin falls to $63.8K after record ETF outflows of $1.72B and MicroStrategy's first BTC sale since 2022. Oversold RSI at 18.2 suggests possible bounce.

The selling pressure bearing down on Bitcoin has taken on multiple dimensions. A record-breaking exodus from US spot ETFs, a top corporate holder offloading coins for the first time since 2022, and a macro environment that just turned more hawkish are all squeezing the world's largest cryptocurrency. The price has slipped to around $63,800 after touching a fresh yearly low, leaving the market in its most somber mood of 2025.

The most striking institutional signal came from the ETF arena. US spot Bitcoin products suffered net outflows of $1.72 billion last week — the worst weekly performance since their inception. BlackRock’s IBIT fund, a bellwether for institutional demand, bled capital heavily, amplifying the downward momentum. The trigger was a surprisingly strong US jobs report: 172,000 new positions were created in May, double what economists had forecast. That resurgence in labor market data reignited fears that the Federal Reserve will keep interest rates higher for longer, prompting a flight from risk assets.

Meanwhile, MicroStrategy — now rebranded as Strategy — executed a move that shattered a long-held perception. Between May 26 and 31, the company sold 32 Bitcoin for $2.5 million, at an average price of $77,135 per coin. It was the first disposal since 2022. The proceeds went toward dividend payments on its preferred stock. The sale trimmed the corporate hoard to 843,706 Bitcoin, accumulated at an average cost of $75,699 — a total outlay of roughly $63.9 billion. With Bitcoin trading well below that level, Strategy’s unrealized loss on its books has ballooned to approximately $11.7 billion according to one estimate.

The sale may have been numerically trivial, but symbolically it was seismic. Strategy had previously built its reputation on a never-sell doctrine. CEO Michael Saylor attempted to reassure the market on Sunday by posting the familiar Bitcoin purchase chart on X, a move that traders historically interpret as a prelude to another acquisition. No official confirmation has followed. The company’s most recent balance-sheet update, released May 26, showed it had repurchased $1.5 billion face value of convertible notes for $1.38 billion in cash, reducing outstanding convertibles from $8.2 billion to $6.7 billion. At that time, Strategy held 843,738 Bitcoin and $871 million in cash. Management frames the sporadic sale as a one-off liquidity maneuver, but the optics are complicated by the timing of the broader sell-off.

The price action itself is flashing extreme oversold signals. The 14-day relative strength index has dropped to 18.2, while a broader RSI reading stands at 25.7 — both deep in oversold territory. Bitcoin has fallen 13% over the past week and is now 29% lower since the start of the year. Its 52-week high of $126,080 sits more than 49% above the current level. Chartists are watching the $60,000 mark closely. If that support level holds, a relief rally toward the $63,500 zone could materialize. A breakdown, however, would open the door to a deeper drop toward $57,000.

The selling is not confined to institutional or corporate players. On-chain data reveals that long-term holders are sitting on 5.3 million Bitcoin at a loss — a level of underwater positions last seen during the liquidity shock of March 2020. State actors are also trimming their holdings. Wallets linked to the Kingdom of Bhutan recently transferred tokens worth roughly $45 million, and the country’s overall reserves have shrunk dramatically over the past year.

On the technical side of the network, there are no signs of congestion or stress. The median transaction fee stands at just 2.0 satoshis per byte, indicating low network utilization. The market’s attention has shifted entirely from capacity debates to the balance-sheet decisions of one of the largest public holders of Bitcoin.

For now, all eyes are on Saylor. Every day that passes without a new purchase filing reinforces the narrative that the May sale was indeed a one-off. If confirmation of a new acquisition arrives instead, it would bolster the view that the corporate treasury strategy remains intact. In the absence of clarity, traders will continue weighing the weight of record ETF outflows, macro headwinds, and an unprecedented corporate sell signal against the possibility of a deeply oversold rebound.