Bitcoin edged higher for a second straight session on Thursday, reaching $60,870, even as spot ETF outflows accelerated and concerns mounted over potential selling by Strategy (formerly MicroStrategy). The modest recovery from the year-to-date low of $58,000 comes amid a backdrop of persistent capital flight from digital asset funds.
ETF Outflows Hit $748 Million This Week
Data from SoSoValue reveals that spot Bitcoin ETFs have experienced net outflows exceeding $748 million so far this week, marking the eighth consecutive week of investor redemptions. June alone saw over $4.5 billion exit these products—the worst monthly performance since their approval in 2024. The selling pressure reflects a broader rotation by investors toward the booming AI sector, where stocks like Micron, Sandisk, and Western Digital have posted triple-digit gains this year.
Adding to the bearish sentiment, reports indicate that Michael Saylor's Strategy has begun selling some of its Bitcoin holdings to bolster cash reserves. The urgency increased last week as the company's preferred shares—STRC, STRD, and STRF—fell below their peg values. This marks a departure from Strategy's long-standing pledge never to sell its Bitcoin. In a prior instance, the sale of just 32 coins contributed to Bitcoin dropping below the $60,000 support level.
Potential Catalysts for a Rebound
Despite the prevailing gloom, several factors could support a Bitcoin recovery in the second half of the year. Notably, memory chip stocks that led the AI rally—such as Micron and Sandisk—plunged sharply on Wednesday. If this weakness persists, a sector rotation into lagging industries, including cryptocurrencies, may materialize. Indeed, many software stocks have already begun to rise this month.
The Crypto Fear and Greed Index has fallen to the "extreme fear" zone of 20. Historically, Bitcoin and other digital assets tend to rebound when market sentiment reaches such low levels. A similar pattern occurred in February, when the index dipped into fear territory, and again in April of last year following President Donald Trump's reciprocal tariff announcements.
Glassnode's on-chain analysis offers another encouraging signal: long-term Bitcoin holders are starting to accumulate supply again. While the volume remains modest, the firm interprets this as an early indication that Bitcoin may be bottoming. This aligns with technical patterns suggesting a potential reversal.
Technical Analysis Points to Possible Upside
Bitcoin's price chart is forming a bullish divergence, where the asset continues to decline while momentum oscillators move higher. The Relative Strength Index (RSI) has climbed from an oversold reading of 15 to 40, and the Percentage Price Oscillator (PPO) lines have reversed upward. If this pattern holds, Bitcoin could rally toward the $65,000 resistance level in the near term. A breakdown below the $55,000 support, however, would signal further downside risk.
For broader market context, the S&P 500 is showing reversal risk, while the recent plunge in memory stocks may accelerate capital rotation into underperforming assets like Bitcoin.
This article is for informational purposes only and does not constitute financial advice.
