Bitcoin's $59,000 Floor Gives Way: A Job Shock, a Bhutan Dump, and the End of a Trump-Era Rally

Bitcoin fell to $59,100, erasing all gains from the Trump trade, after a stronger-than-expected US jobs report dashed rate cut hopes, triggering massive liquidations and ETF outflows.

Bitcoin's slide to $59,100 on June 5 did more than mark a new low for the year — it erased every gain attributed to the so-called Trump trade. The cryptocurrency now trades below the level it fetched on US election day in November 2024, when a Republican victory was priced into risk assets. With the all-time high of $126,080 from October 2025 still nearly 50% above current prices, the narrative of a crypto-friendly administration has all but evaporated.

The trigger was a US jobs report that smashed expectations. The economy added 172,000 positions in May against forecasts of just 85,000, sending 10-year Treasury yields higher and slashing the probability of a June rate cut from 32% to a mere 8%. The unemployment rate held at 4.3%, reinforcing the view that the Federal Reserve has no room to ease. Some market participants now see the possibility of as many as three rate hikes on the horizon — a scenario that drains liquidity from speculative assets like Bitcoin.

The immediate fallout was brutal. Within 24 hours of the data, the liquidation of leveraged positions reached an estimated $1.6 billion to $1.8 billion, with long traders bearing the brunt. Strategy — the company formerly known as MicroStrategy — broke its three-year streak of hoarding when it sold 32 Bitcoin, a symbolic breach of the "never sell" ethos. The weekly loss of 17.3% was the steepest since the collapse of FTX in 2022.

A Himalayan seller joins the fray

Adding to the pressure, the government of Bhutan moved 738 Bitcoin on June 6 through its investment arm, Druk Holding and Investments. The coins, worth roughly $44.88 million at the time, were mined using the country's abundant hydropower rather than bought on the open market. The sale is part of a broader trend of state-held Bitcoin reserves being drawn down, with proceeds expected to fund the Gelephu Mindfulness City, a planned special economic zone. While Bhutan's holdings are modest compared with those of the US or China, the market takes note precisely because the coins were mined, not purchased — any reduction signals that even the most committed hodlers are tapping their reserves.

Institutional signals are starkly divided

The most visible strain is in the US spot Bitcoin ETF market. By June 7, these products had recorded 14 consecutive days of net outflows — the longest such streak since the category launched in 2024. Since mid-May, approximately $4.37 billion has been pulled from the funds. BlackRock's IBIT, the largest by assets, has not been spared. Total assets under management in the ETF complex have shrunk from a peak of $104.29 billion to around $82.83 billion, reflecting both price declines and actual redemptions.

On June 5 alone, outflows hit $326 million. Yet the picture is not uniformly bearish. Morgan Stanley launched a crypto trading pilot on its E*Trade platform, giving its roughly 8.6 million clients access to digital assets at a 50-basis-point fee. The same day, the Morgan Stanley Bitcoin Trust recorded inflows of nearly $9.9 million — a small but notable counterpoint to the broader institutional retreat.

Meanwhile, American Bitcoin Corp., the mining venture backed by Eric Trump, disclosed a stash of over 7,300 Bitcoin and said its production cost had fallen to $36,000 per coin in the first quarter. That cost advantage has protected the firm from the worst of the price decline, but the environment for miners remains challenging.

Technicals and the search for a real bottom

On-chain data shows that roughly 10.46 million Bitcoin are currently held at an unrealized loss. The relative strength index has sunk to 18, deep in oversold territory, and the price is trading about 19% below its 200-day moving average. The recovery from $59,100 to above $63,000 — last seen at $63,796 — was faster than in previous cycles, but analysts caution that it could be a dead-cat bounce rather than a genuine reversal.

Adding to the headwinds is a broader shift in institutional liquidity. SBI Holdings CEO Yoshitaka Kitao has pointed to massive capital flows into artificial intelligence infrastructure, with an estimated $400 billion rotating into the sector over the past six months. As money piles into AI, the "digital gold" thesis for Bitcoin loses some of its appeal when institutional dollars are chasing IPO and infrastructure deals.

For now, the critical support zone remains between $59,000 and $60,000. If it fails, the June 5 low comes back into play. Any durable recovery will require both a halt to the ETF bleed and a meaningful easing of interest-rate fears — and neither appears imminent.