Bitcoin plunged below $70,000 this week in a sharp move that has rattled markets and reignited debate over whether the rally has run out of steam.
Why BTC is tumbling
- Tether sale: On-chain watchers flagged that USDT issuer Tether moved 204 BTC from its reserve wallet to the Bitfinex exchange — reportedly the first time it sold directly from that reserve. The transfer sparked sell-off concerns and added to bearish pressure.
- Large-holder activity: Other big transfers amplified fears. The defunct exchange Mt. Gox moved 10,422 BTC (roughly $740 million), and observers say several large entities have been offloading holdings in recent days.
- ETF outflows: Bitcoin ETFs have recorded a 12-day streak of net outflows, according to SoSoValue. They reported a $519 million net outflow yesterday and a $733 million outflow on May 27, feeding liquidity stress.
- Corporate selling: Michael Saylor’s MicroStrategy disclosed in an SEC filing that it sold 32 BTC — its first sale since 2022 — raising questions about whether more corporate treasuries might liquidate.
- Macro and liquidity pressures: Geopolitical risk (tensions between the U.S. and Iran) and competing liquidity demands — including anticipated IPOs like Elon Musk’s SpaceX — are also being cited as headwinds for BTC.
What analysts expect next
Crypto analyst Chiefy, who had warned of a drop to about $67,000, posted that BTC is likely to see a short “relief bounce” that could lure buyers before a larger leg down. His chart suggests downside risk toward $60,000 — roughly the February low. Analyst Tony shared a similar view: short-term relief is possible, but $60,000 remains on the radar.
Market snapshot
At the time of reporting, CoinMarketCap shows Bitcoin trading near $66,700, down more than 5% over the past 24 hours.
Bottom line: a mix of large-holder selling, sustained ETF outflows, corporate activity and macro uncertainty have combined to push BTC below key levels. Traders should be prepared for volatility, including a potential temporary bounce before further downside toward the $60k area as several analysts warn.
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