Bitcoin Briefly Drops Below $66,000 as ETF Outflows and Global Tensions Pressure Market

Bitcoin briefly fell below $66,000 in late trading before recovering slightly, as selling pressure continued across the broader crypto market. The price touched around $65,700 before stabilizing near $66,860, reflecting ongoing volatility driven by both macroeconomic and market-specific factors.

Ethereum also declined sharply, dropping about 7%, while other major cryptocurrencies including BNB, XRP, and Solana recorded losses ranging between 4% and 8%. The broader sell-off highlights sustained weakness across the digital asset market.

ETF Outflows and Institutional Selling Add Pressure

A key driver behind the downturn has been continued outflows from US spot Bitcoin exchange-traded funds. Investors withdrew more than $519 million in a single day, extending a 12-day streak of negative flows. Ethereum ETFs also saw persistent outflows, marking more than two weeks of continuous selling pressure.

Market analysts say these flows reflect broader institutional caution, as leveraged positions are being unwound and liquidity conditions tighten across crypto markets.

Geopolitical Risks and Macro Uncertainty Weigh on Sentiment

Rising geopolitical tensions in the Middle East have also contributed to risk off sentiment. Higher oil prices and global uncertainty have pushed investors toward safer assets, increasing pressure on cryptocurrencies, which are often treated as higher-risk investments.

Market Also Reacts to Strategy’s Bitcoin Sale

Traders are also assessing the impact of Strategy’s recent Bitcoin sale of 32 BTC, its first reported sale since 2022. Although the amount was relatively small, the move has added to short-term uncertainty as investors evaluate its significance.

Some analysts believe the sale may be symbolic, while others argue that broader selling pressure began earlier, driven by capital rotation into artificial intelligence-focused equities rather than this single event.

Outlook Remains Mixed in Short Term

Experts expect volatility to continue in the near term, with some warning that downward pressure could extend through June. However, others suggest that markets may stabilize once geopolitical headlines ease and liquidation activity slows, as past dips in this cycle have often seen quick recoveries.