Bitcoin Pullback Deepens as ETF Outflows Persist, MSTR

Key Moments

Bitcoin Dips Again After Steep Weekly Loss

Bitcoin traded lower on Tuesday, extending recent weakness as institutional investors continued to withdraw capital from spot Bitcoin exchange-traded funds, though the pace of selling slowed compared to previous weeks.

By 09:39 ET (13:39 GMT), Bitcoin was down 2.5% at $62,261.4. The largest cryptocurrency stabilized somewhat this week after dropping more than 17% last week during a broad and prolonged selloff across the digital asset market.

At the same time, broader risk assets saw some support after Israel and Iran agreed to stop launching strikes against each other following a demand from U.S. President Donald Trump.

Strategy Inc Adds to Bitcoin Position After Trimming Holdings

Strategy Inc (NASDAQ: MSTR), a major corporate holder of Bitcoin, disclosed on Monday that it had acquired 1,550 Bitcoin for a total consideration of $101 million. This latest purchase increased the firm’s aggregate holdings to 845,256 coins.

The new investment significantly exceeded Strategy’s recent divestment of 32 Bitcoin on June 1 and aligned with chairman Michael Saylor’s stated intention to accumulate more Bitcoin than the company sells.

However, Strategy continues to carry elevated debt and equity obligations stemming from the capital it raised to finance its extensive Bitcoin buying. These commitments could lead to additional Bitcoin sales in the future. The 32 Bitcoin sold last week were largely used to fund dividend payments on certain preferred stock.

The sale last week was notable for the market because it represented Strategy’s first disposal of Bitcoin since late 2022 and was viewed as one of several bearish signals for the asset.

ETF Outflows Ease but Remain a Drag on Bitcoin

Institutional investors continued to pare exposure to spot Bitcoin ETFs this week, though redemptions moderated from the levels seen over the past three weeks.

On Monday, investors withdrew $91.4 million from spot Bitcoin ETFs, a sharp slowdown from the $325.7 million pulled on Friday.

Even so, the vehicles remained under pressure after enduring three consecutive weeks of net outflows. Spot Bitcoin ETFs lost $1.7 billion last week, marking their largest weekly redemption since February 2025.

Multiple headwinds weighed on sentiment toward cryptocurrencies, including risk aversion linked to the Gulf war, worries about rising interest rates, and a rotation of investor interest toward artificial intelligence-related stocks.

Altcoins Track Bitcoin Lower

The weakness in Bitcoin spilled over into the broader cryptocurrency market on Tuesday, with most major altcoins trading in negative territory.

Ether, the second-largest cryptocurrency by market capitalization, slipped 1% to $1,666.72. XRP fell 0.4% to $1.1584.

Solana and BNB declined 1.5% and 1%, respectively, while Cardano moved against the broader trend and gained 0.8%.

In the memecoin space, Dogecoin dropped 1%, and $TRUMP retreated 1.5%.