Bitcoin sinks below $70k for first time in 2 months! Here's why.
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Bitcoin is currently trading below the psychologically-important $70,000 level.
Today, BTC is posting its lowest prices since April 7th (nearly 2 months ago), and is down 2.2% so far today.
Yesterday, it fell 3.1% - its biggest one-day drop in over 2 months (since March 27th's 4.3% drop).
Prior to yesterday, BTC had been testing support around its 50-day simple moving average (SMA).
[Trade Bitcoin BTC Button]<https://i.bybit.com/ab1kWABZ>
ICYMI: We also initially flagged Bitcoin's drop yesterday (Mon, June 1), on @Bybit_Learn.
Why is Bitcoin tumbling?
1) Strategy's BTC sale spooks markets
Strategy (formerly known as MicroStrategy) is the world's largest corporate Bitcoin holder.
Yesterday (Mon, June 1), Strategy disclosed that it sold about 32 BTC, worth some US$2.5 million last week.
This marked Strategy's first BTC sale since 2022!
To be clear, Strategy's Chairman and Co-founder, Michael Saylor, had already given markets a heads up just a few weeks ago — during the company's most recent earnings call — about a potential BTC sale before end-2026.
The apparent aim is to sell BTC to fund distributions on its preferred stock.
Also, the amount sold last week is tiny compared to its ~$60 billion BTC stash still in hand.
But the symbolism was huge, and the announcement was enough to deliver a psychological dent into crypto sentiment.
2) ETF crowd — walking out the door
Institutional investors are pulling back fast.
Spot Bitcoin ETFs have now seen 11 consecutive days of outflows, including a single-day exodus of $483.8 million on Monday — with BlackRock's IBIT alone accounting for $440.3 million of that.
May's total ETF outflows hit $2.4 billion, the worst month of 2026.
In other words ...
ETF outflows began a couple of weeks ago, with Strategy's announcement then adding fuel to the selloff.
Furthermore, US stocks punching up to new record highs may be drawing funds away from cryptos.
3) US-Iran tensions adding selling pressure
A potential ramp-up in US-Iran tensions are rattling risk assets broadly.
Yesterday (Mon, June 1), the Tasmin news agency reported that Iran will stop communicating with the US on peace talks. That report sent Brent soaring back briefly to $100/bbl, while shaking risk sentiment.
DECODE: Higher oil prices fuel fears that global inflation will rise faster which may then force major central banks to raise interest rates. Such an environment (higher inflation + higher rates) makes investors less willing to hold speculative assets like crypto.
Bitcoin's drop: by the numbers
BTC has now fallen about:
45% down from its all-time intraday high of $126,150 reached on October 6, 2025
20% down so far in 2026 (year-to-date)
16% down since the May 6th intraday high
BTC's latest drop means that the world's biggest crypto is now seeing a technical correction (down over 10% from recent high).
Also, it has erased more than half of the 38% advance it saw during the 3 months between early-Feb through early-May.
Where to next for BTC?
UPSIDE: If the $70k psychological support can hold, a rebound could see BTC re-testing its 50-day simple moving average (SMA) as near-term resistance.
DOWNSIDE: If the $70k psychological support fails to hold, an extended selloff could see BTC bears (those hoping for prices to go lower) aiming for the $66k psychological region.
READ MORE:
published Apr 22: Bitcoin hits new 2-month high!
published April 20: Bitcoin listed among "3 Assets to Watch (Apr 20-24)", citing prospects of $80k BTC
published March 27: How has Bitcoin fared over past US-Iran conflicts? BTC showcases resilience despite Middle East conflict
published March 17: Bitcoin hits 6-week high! Time to get pumped?
published March 4: Middle East Watch: US dollar vs. Bitcoin — which is the ultimate safe haven?
published February 11: Bitcoin bear market: Is the end near?
DISCLAIMER:
This article is provided for general information and reflects the author's views only. It does not constitute investment advice, nor an offer or solicitation to buy or sell any financial instruments or digital assets. Your ability to access or use any products or services mentioned may be subject to the laws and regulatory requirements of your jurisdiction.