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Bitcoin (BTC) traded near $73,000 on Monday as one of the largest waves of institutional selling since the launch of US spot Bitcoin exchange-traded funds (ETFs) continued to weigh on market sentiment. According to SoSoValue data, Bitcoin ETFs recorded $1.42 billion in net outflows during the week ending May 29, the third-largest weekly withdrawal on record and the third consecutive week with more than $1 billion leaving the sector.
The selling comes at a time when geopolitical tensions between the United States and Iran have pushed oil prices above $90 per barrel and increased uncertainty across global markets. Yet Bitcoin’s ability to remain around the $73,000 level despite persistent ETF redemptions suggests the market is receiving support from other sources of demand.
Bitcoin fell roughly 4.5% over the past week, underperforming major equity benchmarks even as technology stocks pushed several global indexes to record highs.
The divergence highlights a major shift from the narrative that drove Bitcoin’s rally earlier in the cycle. Throughout much of 2024 and early 2025, ETF inflows acted as a consistent source of demand. Over the past three weeks, that relationship has reversed.
SoSoValue data shows US spot Bitcoin ETFs have now recorded more than $2.9 billion in cumulative outflows since mid-May. Total assets across the category declined to approximately $94.17 billion by the end of last week.
Spot Bitcoin ETFs saw $1.42B in net outflows last week, third-highest on record
From May 25 to May 29 (ET), spot Bitcoin ETFs saw $1.42 billion in net outflows, the third-highest on record. Spot Ethereum ETFs posted $241 million in net outflows, marking a third consecutive week… pic.twitter.com/DTR7Yvr5IA
— Wu Blockchain (@WuBlockchain) June 1, 2026
The scale of the withdrawals stands out because Bitcoin hasn’t experienced a comparable collapse in price. While the asset remains well below recent highs, it has largely stabilized near the low-$70,000 range rather than entering a deeper liquidation phase.
A large portion of last week’s outflows came from a $1.26-billion block transaction involving BlackRock’s iShares Bitcoin Trust (IBIT).
According to research published by NYDIG, 29.21 million IBIT shares changed hands through an off-exchange transaction at a 2.3% discount to market value. The discount represented roughly $29.5 million in execution costs.
NYDIG argued that the trade was unlikely to represent the unwinding of a traditional Bitcoin basis trade, a strategy that combines spot Bitcoin exposure with futures positions. The company’s analysis pointed to the absence of unusual activity in CME Bitcoin futures during the transaction window.
Instead, the transaction may indicate that a large holder chose to exit Bitcoin exposure quickly despite accepting a substantial discount.
That distinction matters because ETF flow data alone doesn’t reveal investor intent. The IBIT transaction provides one of the clearest examples in recent months of a major market participant actively reducing exposure during a period of declining prices.
Analysis from crypto investment firm, @NYDIG, indicates that the $1.26 billion block sale of @BlackRock's iShares #Bitcoin Trust (#IBIT) might have been driven by a large investor seeking a rapid exit from bitcoin exposure rather than the unwinding of a common hedge-fund trading… https://t.co/PTQKM7QmWY
— BitKE (@BitcoinKE) June 1, 2026
ETF outflows aren’t the only challenge facing Bitcoin.
Oil prices climbed above $90 per barrel after renewed uncertainty surrounding US-Iran negotiations and disruptions affecting the Strait of Hormuz.
Bitcoin’s recent weakness has coincided with record gains in several technology-focused equity indexes driven by demand for AI and semiconductor stocks.
Capital has not exited risk assets altogether. Strong inflows into technology shares suggest some investors are rotating toward sectors showing stronger momentum while reducing exposure to crypto-linked products.
That trend helps explain why ETF redemptions have accelerated even as stock markets continue reaching new highs.
Despite the scale of institutional withdrawals, several indicators suggest the market may not be experiencing broad capitulation.
Santiment reported that Bitcoin’s 30-day market value to realized value (MVRV) ratio stood at -2.2%, while its 365-day MVRV measured -17.2%. Historically, negative readings indicate that many holders are sitting on unrealized losses, conditions that have often appeared during accumulation periods rather than market tops.
Another data point comes from market commentator Adam Livingston, who noted that Bitcoin’s four-year moving average (MA) sits near $60,000. Based on historical observations, Bitcoin’s current distance above that trend level places it in a valuation range that has previously delivered stronger long-term returns than average dollar-cost averaging.
Bitcoin's 4-year moving average is right at $60,000.
Bitcoin is only 22.75% above its 4-year moving average.
Historically, only about 18.5% of valid days had a lower deviation.
About 81.5% of days were more expensive relative to the 4Y MA.
Buying BTC when it was in this same… pic.twitter.com/2UBpUjPtcP
— Adam Livingston (@AdamBLiv) June 1, 2026
The contrast is striking. ETF investors have withdrawn billions of dollars over the past three weeks, while several valuation and onchain indicators remain far less pessimistic.
Bitcoin’s derivatives market also shows signs that traders remain cautious despite the recent stabilization in price. Data shared by onchain analyst Darkfost showed that Bitcoin open interest across major exchanges, excluding CME, has not recovered to levels seen before the Oct. 10 liquidation event, when about 71,000 BTC worth of positions were wiped out in a single day.
According to the analysis, aggregate open interest stood near 375,000 BTC before the liquidation event compared with roughly 351,000 BTC today. The data suggests many traders have been reluctant to rebuild leveraged positions during the past several months. Darkfost noted that Binance has been the main exception, with open interest exceeding pre-liquidation levels and the exchange’s share of the derivatives market rising from around 30% to more than 36%.
❌ Bitcoin Derivatives Market Still Hasn't Recovered From October 10
Bitcoin has still not fully recovered from the largest liquidation event in its history, which occurred on October 10.
🔴 During that single day, nearly 71,000 BTC were wiped from the Open Interest of major… pic.twitter.com/j11sp3UINM
— Darkfost (@Darkfost_Coc) June 1, 2026
The derivatives data presents a different picture from ETF flows. Open interest remains below pre-October levels, suggesting many traders have not rebuilt leveraged positions despite Bitcoin stabilizing near $73,000. That restraint contrasts with previous periods when rising leverage amplified market volatility.
One factor that may challenge the accumulation thesis in the short term is investor sentiment.
Santiment reported that Bitcoin recently reached a ratio of 2.23 bullish comments for every bearish comment on social media, the highest reading of 2026. The research company noted that previous sentiment extremes this year were followed by short-term pullbacks rather than sustained rallies.
The data also showed funding rates becoming increasingly skewed toward long positions, a setup that resembles conditions seen before Bitcoin’s late-January 2026 decline.
That creates an unusual backdrop for the market. ETF investors continue withdrawing capital, long-term holders continue accumulating, and social sentiment has become increasingly optimistic despite recent price weakness.
US spot Bitcoin ETFs lost $1.42 billion last week, reducing total assets to $94.17 billion. The sector has now recorded three consecutive weeks of withdrawals exceeding $1 billion, the longest sustained period of institutional selling pressure seen in 2026.
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