Bitcoin experienced a significant downturn on Friday, falling as low as $59,764.90, marking its lowest price point since October 2024. The cryptocurrency is set to record a 17% weekly loss, capping a challenging period for investors.
This decline occurred amidst a record streak of Bitcoin ETF outflows, compounded by MicroStrategy's sale of a portion of its Bitcoin holdings and a stronger-than-expected May jobs report that pressured risk assets.
The flagship cryptocurrency, last trading around $60,450.00, extended its losses to reach levels not seen in months. At the $60,000 mark, Bitcoin is now down by more than half from its all-time high of approximately $126,000, which was reached in October 2025.
The market sentiment was initially weighed down after MicroStrategy sold a small amount of its Bitcoin, triggering hundreds of millions of dollars in liquidations. Further exacerbating the pressure, a robust jobs report for May led to higher yields, impacting risk-sensitive assets.
Charles-Henry Monchau, chief investment officer at Syz Group, identified MicroStrategy's selling and a "crowding-out effect" as key drivers for Bitcoin's recent weekly slump.
Speculators are going all-in on AI stocks and memory chips, especially in Korea, and the market also anticipates that upcoming monster IPOs will divert some retail money into the new stocks.
Charles-Henry Monchau, Syz Group
Despite the overall trend, Bitcoin ETFs collectively saw a net inflow of $3 million on Thursday, breaking a 13-day streak of outflows, their longest ever. However, net assets across these ETFs have fallen substantially from $107.8 billion to $80.4 billion since May 14.
The recent market behavior has led investors to question Bitcoin's traditional narratives, including its role as "digital gold" during geopolitical uncertainty and its correlation with high-beta tech stocks.
We saw the 30-day Pearson correlation between bitcoin and the Nasdaq and S&P 500 reach a near-perfect positive correlation as recently as a month ago, but that has collapsed over the last several weeks. So while global equities, particularly tech stocks, continued to reach new all-time highs, bitcoin has failed to track the same upward price trend.
Rajiv Sawhney, Wave Digital Assets
Moreover, the "Clarity Act," a proposed bill for crypto market structure, is facing increasing uncertainty due to shifting legislative priorities and divisions among lawmakers, potentially removing a significant catalyst for renewed investor interest.
Conversely, some market participants view the current price dip as an opportunity. Matt Cole, CEO of Strive, asserted that Bitcoin's underlying fundamentals "have never been better," suggesting that its current position at the 200-week moving average historically presents an ideal time for buying.
