Bitcoin heads for its weakest week since February as spot ETF outflows persist and money rotates into AI trades
Bitcoin showed renewed weakness in early June and is on track for its worst weekly performance since February, according to CoinDesk. The pullback has been linked to persistent net outflows from spot Bitcoin ETFs, fading price momentum and a shift in risk capital toward AI infrastructure and chip-related assets.
Data from SoSoValue show U.S. spot Bitcoin ETFs logged a 13th straight session of net outflows on Wednesday, the longest streak on record. Total assets under management have fallen to $82.8 billion from $107.8 billion on May 14. Citi analyst Alex Saunders said ETF flows have been a key driver of Bitcoin's price action.
The report also cited softer expectations for near-term catalysts after the outlook dimmed for the U.S. Crypto Market Structure Act, the CLARITY Act.
CoinDesk pointed to a separate catalyst this week: Strategy, the company led by Michael Saylor, disclosed it sold 32 bitcoins, raising about $2.5 million to fund preferred stock dividend payments. It was the firm's first Bitcoin sale since 2022 and only the second on record. While the sale is small relative to its holdings, traders focused on the signal shift, given Saylor's long-running stance that he would not sell. The move was followed by forced unwinds in leveraged longs; CoinGlass data show long liquidations totaling $594 million over 24 hours.
The report added that Bitcoin's alignment with common market narratives has weakened in recent months, with less consistent behavior as "digital gold," an inflation hedge, or a high-beta tech proxy. At the same time, U.S. equities have remained firm, and flows have tilted toward semiconductors and AI infrastructure. Market interest has also been building around private tech names such as SpaceX and Anthropic, reducing Bitcoin's appeal for speculative capital.
Investors will be watching Strategy's position update next Monday for clues on whether it resumes buying, continues selling or leaves holdings unchanged. A return to meaningful purchases could support sentiment, while ongoing sales or a pause could raise concerns that a major source of demand is fading.
Institutional commentary cited by CoinDesk suggested that a quick resumption of buying after the sale could be read as a sign of stabilization. Some analysts, though, continue to reference Bitcoin's four-year cycle and argue that if weakness persists, a durable bottom may take longer to form.
