Bitcoin Price Drop Linked to Institutional Sales and Outflows

Bitcoin's recent price drop has raised concerns about the state of the cryptocurrency market. According to analysts at Wintermute, the correction is linked to institutional sales and outflows from exchange-traded funds (ETFs).

The company notes that Bitcoin lost around 14% in value over the week, falling to levels last seen in September 2024. Experts do not consider this a confirmed market bottom, requiring sustained buying pressure for a reversal.

Wintermute also highlighted the sale of 32 BTC by Strategy between May 26 and 31, describing it as insignificant but symbolic given its significance as the firm's first Bitcoin sale since 2022.

The main market pressure is attributed to weakened demand, with US spot Bitcoin ETFs showing net outflows for 10 consecutive sessions after May 30. This resulted in cumulative net losses of around $2.97 billion during this period.

Total outflow for May reached $2.43 billion, the worst monthly figure of 2026. Wintermute's own data from its OTC terminal shows retail investors have been net sellers, shifting to stocks, while American institutions have taken a bearish stance in recent days. Flows in Asia and Europe remained balanced.