Bitcoin Plummets Below $60,000 Amid AI Rotation and Strategy Sale

Bitcoin experienced its worst weekly performance since the 2022 FTX collapse in early June 2026, plummeting below $60,000 and erasing over $1 trillion in market value. The decline was triggered by MicroStrategy disclosing the sale of 32 BTC for $2.5 million to fund preferred stock dividends, marking the company's first sale since December 2022 and breaking its long-standing accumulation doctrine. While the firm later purchased 1,550 BTC for $101 million to stabilize confidence, the move initially sparked widespread retail panic.

This volatility was compounded by record institutional outflows from U.S. spot Bitcoin ETFs, which saw over $5 billion leave the funds in late May and early June. Market analysts identify a massive capital rotation, with an estimated $400 billion flowing into AI infrastructure and semiconductor stocks, as well as anticipation surrounding a confidential IPO filing from Space Exploration Technologies Corp.

Macroeconomic and geopolitical headwinds further pressured the asset. A stronger-than-expected May jobs report raised fears of a hawkish Federal Reserve, while military strikes and sanctions between the United States and Iran heightened global risk aversion. Technical indicators deteriorated as Bitcoin fell below its 200-week moving average, leading some analysts to characterize the period as a silent bear market. Despite these crashes, proponents and some institutional leaders maintain long-term bullish targets, while critics question the asset's failure to act as a reliable inflation hedge.