Bitcoin fell below $71,000 at the weekly open as a rare Strategy sale and rotation into AI stocks triggered selling from multiple directions.
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Bitcoin slides below $71,000 as Strategy sale and AI rotation weigh
Bitcoin fell 3% to $70,800 at the June 1 weekly open, as a rare Strategy bitcoin sale and a capital rotation into AI stocks triggered selling from multiple directions.
"The sale was tiny relative to Strategy's total holdings, but the psychological impact was outsized because Saylor built his brand on never selling," Michael Tanguma, chief executive officer of Onramp, said. "For years the deal was that the bitcoin never gets touched."
Strategy disclosed the sale of 32 bitcoin for roughly $2.5 million in an SEC filing Monday, according to Arkham Intelligence. The company still holds 843,706 bitcoin, but its average acquisition cost of about $75,700 per coin leaves its holdings underwater. Bitcoin open interest has fallen to about $30.4 billion from $34.5 billion on May 14, Coinglass data shows, while funding rates flipped from negative 0.009% to positive 0.002%.
The $72,754 level, corresponding to the 0.618 Fibonacci retracement, now serves as key support. A close below that opens a path toward $69,470 and potentially $66,800. To flip the bias, bitcoin must reclaim $74,783.
AI stocks siphon speculative capital
Nvidia rose 6.2% on Monday after introducing its RTX processor, sucking up capital that might have flowed into crypto. Bitcoin miners pivoting to AI also gained, with HIVE Digital up 10.1% and Hut 8 up 7.1%.
On-chain holders accumulate through the dip
Mid-to-long-term holders are adding coins rather than selling. The Hodler Net Position Change rose from about 38,056 bitcoin to roughly 40,309 bitcoin since May 29, Glassnode data shows, suggesting conviction among larger holders despite the price decline.
The combination of a rare Strategy sale, competition from AI stocks, and bitcoin trading below Strategy's average acquisition cost creates an uncertain near-term outlook. If the $72,754 support holds, the current range could persist. A break below that level would likely accelerate selling toward the $66,800 zone.
This article is for informational purposes only and does not constitute investment advice.
[1] Bitcoin bulls eye fresh positions after BTC price drops under $71K[2] Price of Bitcoin Drops as Michael Saylor’s Strategy Sells Off Some of Its Stash[3] Bitcoin Bulls Are Defending One Key Level, Losing It Means a 10% Fall[4] Live markets: Bitcoin retreats under $72,000 as Strategy unloads BTC for first time in four years
