Hassan Maishera
TL;DR
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Bitcoin fell below $66,000 late Tuesday night before rebounding slightly to $66,460.
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The bearish performance comes as capital rotates into US equities.
Bitcoin briefly slipped below $66,000 on Tuesday night before staging a modest rebound, as broader crypto markets declined under pressure from institutional outflows, leveraged liquidations, and renewed geopolitical uncertainty.
The move comes as traders also weigh Strategy’s recent bitcoin sale and shifting risk sentiment across global markets.
Bitcoin and Major Altcoins Slide Across the Board
The world’s largest cryptocurrency, Bitcoin (BTC), fell to around $65,700 before recovering slightly to $66,460 by early Wednesday.
Altcoins also came under heavy pressure. Ethereum (ETH) dropped 7.1% to $1,849, BNB fell 7.2% to $635, XRP declined 4.8%, and Solana (SOL) slid 7.7%
The broad-based sell-off reflected weakening risk appetite across the digital asset market.
Institutional demand also continued to weaken as exchange-traded funds recorded persistent outflows. U.S. spot Bitcoin ETFs: $519.2 million in net outflows (12th straight day), while spot Ethereum ETFs: $90.2 million in net outflows (16th straight day)
Analysts say the sustained outflows are adding pressure to already fragile market liquidity.
Binance Research argues that strong, narrow equity rallies can siphon liquidity away from crypto markets, particularly Bitcoin.
The company stated that the current investor rotation is being driven by enthusiasm for AI infrastructure and applications, alongside geopolitical uncertainty pushing capital into defense and energy equities.
However, the firm also noted that these periods of equity concentration have historically been temporary, with Bitcoin often bottoming within 0–20 weeks, and a median recovery time of around two weeks in past cycles without major shocks.
Geopolitical Risks Add to Risk-Off Sentiment
Fresh geopolitical tensions also contributed to the downturn, with renewed airstrikes in the Middle East pushing oil prices higher and amplifying risk aversion across global markets.
WTI crude rose 1.13% to $94.82, while Brent crude climbed 1.04% to $97.07
Beyond macro factors, traders are also reacting to Strategy’s recent Bitcoin activity. Strategy (formerly MicroStrategy), led by Michael Saylor, disclosed it sold 32 BTC for roughly $2.5 million between May 26 and May 31—its first sale since December 2022.
The announcement weighed on sentiment, with Strategy’s Nasdaq-listed shares (MSTR) falling 9.15% to $136.08, and down about 23% over the past month.
