Bitcoin Slides 14% for the Week as ETF Redemptions Persist, Strategy Sells, and Macro Backdrop Worsens
ChainCatcher reports that Bitcoin's weekly loss has expanded to about 14%, with prices hitting a Thursday low near $62,400. The decline reflects a mix of catalysts: a rare BTC sale by Strategy, ongoing outflows from U.S. spot Bitcoin ETFs, and weakening macro conditions.
In late May, Strategy sold 32 BTC to fund preferred dividend payments. While the amount was small, QCP Group said the move carried outsized signaling impact given Strategy's long-standing reputation as a structural buyer and the market's "never sell" narrative that has helped underpin institutional sentiment.
Flows remain a key headwind. U.S. spot Bitcoin ETFs have now logged three consecutive weeks of net outflows, totaling $4.21 billion in redemptions, described as the largest institutional de-risking cycle since 2026. Glassnode estimates the ETFs' average cost basis at roughly $83,000, with recent rebounds repeatedly rejected around that level, pushing the average ETF investor back into unrealized losses.
On-chain indicators also point to a softer market structure. The cost basis of short-term holders has slipped to $76,400, falling below the real market average for the first time since January 2022—a pattern more consistent with later-stage bear-market dynamics.
Bitwise's Head of European Research Andre Dragosch said his internal crypto sentiment index has flashed a contrarian buy signal, with pessimism at its deepest level since the Feb. 5 capitulation. He highlighted Bitcoin's 200-week moving average near $61,000 and the realized price around $56,000 as key support zones in assessing whether the correction is close to ending.
Derivatives pricing remains defensive. QCP Group said volatility markets are emphasizing downside protection rather than a "buy the dip" posture. Glassnode added that unless Bitcoin reclaims the $67,000–$68,000 area before spot demand improves and ETF holders return to profitability, the near-term path of least resistance remains consolidation or further downside.
