Bitcoin experienced its worst week since February, as investors shifted to other assets

Short Summary

At the beginning of June Bitcoin lost almost half its value in a week, and liquidity continues to flow out to other assets. Experts believe that the cryptocurrency may recover after the dip, but there is no clear catalyst yet.

1. Price Decline and Capital Outflow
Market Condition: 13 % drop over the week
Price fell to $63,354.58 – worst week since February
ETF outflow (first day) May 14: $107.8 bn → to today: $82.8 bn

The decline is due to the main “dominant narrative” of cryptocurrencies losing momentum. When demand isn’t supported by a new catalyst, liquidity quickly moves to other market segments.

2. Possible Catalyst
* “Clarity Act” – U.S. bill regulating the crypto market.

If passed, it could bring structure and transparency for investors, boosting Bitcoin demand. Currently legislators are divided on key points.

3. Impact of Strategy Actions
* Michael Sailor announced a sale of 32 BTC for $2.5 m – the first such case since 2022 and the second in company history.

* This is only 0.004 % of all Strategy assets, but deviating from the “never sell Bitcoin” principle eroded investor confidence.

* Consequently, long positions worth $594 m were liquidated within a day.

4. Current Dynamics and Comparison with Other Assets
Asset | Condition
Bitcoin | Red zone, decline after three years of growth
Equities | New records: AMD, Intel, Micron have more than doubled since the start of the year
Other Cryptos | Interest in SpaceX and Anthropic (still private companies)

Bitcoin does not act as “digital gold” – it doesn’t react to geopolitical instability, inflation, or behave like a tech stock.

5. What’s Expected in the Coming Days
* Monday: investors will learn whether Strategy was buying or selling Bitcoin over the week.

* If the company kept buying – this could stabilize the market.
* If it sold or stayed inactive – that would raise concerns.

* A purchase of up to 3,200 BTC (100× more than sold) is possible if Strategy decides to activate.

6. Historical Context
Experts note that Bitcoin follows a four‑year cycle:

Thus, by the end of October the price could fall below $40,000, but this is not considered a “tragedy” by historical standards.

Conclusion
Bitcoin is experiencing a period of strong capital outflow and price decline. The impact of Strategy’s actions and the potential passage of the Clarity Act could be key factors for market recovery. Meanwhile, investors are watching how the positioning of the largest cryptocurrency will change in the coming days.