Bitcoin Hits Four-Month Low Amid Institutional Selling
Bitcoin hovered near a four-month low on Friday, set for a steep weekly decline as institutional selling continued. Persistent concerns over the U.S.-Iran war and a shift toward artificial intelligence (AI) stocks led traders to avoid cryptocurrencies.
The world’s largest cryptocurrency extended losses after Strategy, a major corporate Bitcoin holder, disclosed it sold a portion of its holdings earlier in the week. Bitcoin fell 4.5% to $61,254 by 09:55 ET (13:55 GMT).
Weekly Losses Accelerate on ETF Outflows
Bitcoin was poised for a 17% weekly drop amid pressure from ongoing institutional sales, primarily targeting spot Bitcoin ETFs.
Data from SoSoValue revealed that Bitcoin ETFs experienced $1.4 billion in outflows this week—the fourth consecutive week exceeding $1 billion.
Geopolitical Tensions and Risk Aversion
The recent institutional selling comes amid heightened risk aversion, largely due to renewed military action between the U.S. and Iran. Reports indicate Iran has halted indirect negotiations with the United States, fueling further uncertainty.
AI Stocks Draw Investment Away from Crypto
Investors are increasingly favoring AI stocks over non-yielding crypto assets. The anticipation of major IPOs from companies like SpaceX, OpenAI, and Anthropic has also driven sentiment toward the AI sector, contributing to declines in cryptocurrency holdings.
Retail Investor Sentiment Also Weak
Retail traders are showing caution as well. The Coinglass Bitcoin Coinbase Premium Index, which compares Bitcoin’s spot price on Coinbase to the global average, indicated the crypto was trading at a deep discount, reflecting broader investor hesitation.
U.S. Labor Market and Fed Rate Outlook
A strong May jobs report added 172,000 positions, nearly doubling expectations of 85,000, keeping the U.S. labor market robust despite geopolitical tensions. The unemployment rate remained at 4.3%, while average hourly earnings rose 0.3%.
Markets are pricing in at least one Federal Reserve rate hike by the end of 2026 due to concerns that inflation may reignite, though analysts noted that unemployment and wage growth may limit dramatic policy changes.
Broader Crypto Market Retreats
Other major cryptocurrencies followed Bitcoin’s decline.
- Ether (ETH) fell 9.4% to $1,617, down nearly 20% for the week and hitting a 14-month low.
- XRP dropped 6% to $1.1044, down nearly 17% for the week.
- Solana fell 7.3%, while Cardano slumped over 15%, reaching a five-year low.
- BNB declined 3.5%, and among memecoins, Dogecoin dropped 8%, while $TRUMP token slid 11%.
Declines were broad-based, reflecting risk-off sentiment and anticipation for upcoming U.S. nonfarm payroll data, which could influence market direction.
