Crypto Market Weakens, Strategy Sells Bitcoin for the First Time Since 2022
Bitcoin fell sharply on Tuesday (June 2nd) and hit a roughly two-month low, extending recent weakness after Strategy disposed of some of its Bitcoin holdings for the first time in nearly four years. Pressure also came from declining risk appetite amid uncertainty over the US-Iran war, following conflicting signals about whether negotiations were still ongoing.
In the latest price update, Bitcoin was at $67,256, down about 5.3% on the day. Ethereum also weakened to $1,911.97. These moves put the crypto market on the defensive, as market participants attributed the volatility of risk assets to geopolitical headlines and changing macroeconomic expectations.
Strategy revealed on Monday that it sold 32 Bitcoins between May 26 and 31 at a net average price of $77,135 per coin to raise $2.5 million. Although small compared to the company's total holdings, this action is seen as a negative signal as it is the first sale since late 2022, and comes at a time when selling pressure on Bitcoin has been increasing from institutional investors.
According to the circulating narrative, Michael Saylor had previously signaled that the company could sell some assets to meet financing obligations. Bitcoin Strategy's purchases in recent years have been driven by debt-based financing and preferred stock issuance, leaving the company facing interest and dividend payments. At the market level, this "corporate selling" signal coincides with reported outflows of over $3 billion from Bitcoin ETFs over the past three weeks, adding to pressure on demand.
Sentiment is also influenced by developments in the Middle East. Reports on Monday suggested Iran was walking away from indirect negotiations with the US, while President Donald Trump signaled a different story, saying talks were ongoing and he expected an agreement within a week. Although news of a partial ceasefire between Israel and Hezbollah provided some room for sentiment improvement, uncertainty regarding the US-Iran relationship remains a key driver of weakening risk appetite.
In the altcoin market, movements tended to weaken in line with Bitcoin. XRP and Dogecoin are hovering around $1.26 and $0.095, respectively, according to price updates from several crypto market trackers, reflecting the continued pressure on risk assets. The Official Trump Token (TRUMP) is at $1.99. Going forward, the market will monitor the continuation of ETF flows, corporate responses to price volatility, and the direction of geopolitical headlines that could rapidly shift risk perceptions. (Arl)
Source: Newsmaker.id
