Key Takeaways:
Strategy sold 32 bitcoin for the first time since 2022, while Bitcoin ETFs flipped negative year-to-date, pushing BTC to a two-month low.
Bitcoin fell 3% to $71,371, a two-month low, after Strategy sold 32 BTC for $2.5 million and ETF outflows turned negative for the year. The largest cryptocurrency by market cap touched an intraday low of $71,347 before paring some losses, according to CoinGecko data as of 14:30 UTC.
"The sale is a symbolic shift from Strategy's long-held accumulation strategy, but the real weight on price is coming from sustained ETF outflows," Nina Volkov, crypto analyst at Edgen, said. "We are seeing institutional demand reverse after months of steady inflows, and that is a more structural concern for Bitcoin's near-term trajectory."
Strategy, the largest publicly traded corporate holder of bitcoin, sold 32 BTC between May 26 and May 31 at an average price of $77,135 per coin, according to an 8-K filing Monday. The $2.5 million sale, representing 0.0038% of its holdings, will fund dividend payments on its STRC perpetual preferred stock. The company still holds 843,706 BTC purchased at an average cost of $75,699. Strategy shares fell 6% to $149.25 in Monday trading, while Coinbase shares dropped 5% to $179.50.
The sale marks the first time Strategy has reduced its bitcoin holdings since December 2022, when it sold 704 BTC for tax-loss harvesting before repurchasing more two days later. Executive Chairman Michael Saylor had signaled the move during the company's Q1 earnings call on May 5, saying the firm would "probably sell some Bitcoin to fund a dividend just to inoculate the market." President and CEO Phong Le added that the company would sell "when it is advantageous to the company" and "if it is accretive to Bitcoin per share."
ETF Outflows Add to Downside Pressure
Bitcoin ETFs have recorded cumulative net outflows totaling billions of dollars over the prior two weeks, flipping negative for the year, according to data from The Block. The outflows mark a sharp reversal from the first four months of 2026, when institutional inflows drove Bitcoin to all-time highs above $110,000. More than $90 million in BTC-tracked futures positions were liquidated across major exchanges in the hours after the Strategy filing, Coinglass data shows.
The combination of a flagship corporate holder selling for the first time in years and sustained ETF redemptions has created a dual headwind for Bitcoin. On-chain analysts had flagged unusual wallet activity days before the filing, with Arkham Intelligence tracking BTC movements to Coinbase Prime, fueling speculation that resolved in a Polymarket contract paying out an estimated $200,000 to traders who bet on a sale by May 31.
Bitcoin's next support level sits at $70,000, a psychological barrier that has held since March. A break below that level could open the path toward $67,500, the December 2025 consolidation zone, according to technical analysis. Resistance stands at $75,000, the level where Strategy executed its sale. Fundstrat's Tom Lee described the current selloff as "rage quitting" and "a classic market bottom" during a CNBC appearance Monday, though the broader macro backdrop remains challenging with the Federal Reserve holding rates at 5.25% to 5.50%.
This article is for informational purposes only and does not constitute investment advice.
