Bitcoin Drops to 2-Month Low as Strategy Sells BTC and ETFs Turn Negative YTD
Bitcoin slid to a near two-month low around $71,479 on Monday as spot Bitcoin ETF outflows accelerated and turned year-to-date flows negative for the first time in 2026. Over the latest 10-day outflow streak, ETFs have shed nearly $3 billion, with investors reducing exposure rather than maintaining BTC positions.
Adding pressure, Strategy—Michael Saylor’s Bitcoin treasury firm holding over $60B in BTC—sold 32 BTC for about $2.5 million last week. The average sale price was reported at $77,135, and Strategy said proceeds will fund preferred stock distributions. Strategy’s BTC holdings would fall to 843,706 BTC (about $61B at current prices).
Market stress is also rising: CoinGlass data cited roughly $155 million in liquidations over 24 hours, with around 94% from long positions. Traders have been reacting to the idea that even a small fraction of Strategy’s holdings being sold could weaken confidence.
In the short term, the combination of ETF outflows and sell-side supply likely keeps downside pressure on Bitcoin and can increase volatility. In the longer run, whether Bitcoin stabilizes may depend on a reversal in ETF demand and any pause in corporate BTC sales.
Bearish
This is bearish because the news stack is dominated by sustained sell pressure. First, Bitcoin ETF outflows are described as nearing $3B over a 10-day streak and flipping year-to-date flows negative—historically, persistent ETF outflows often correlate with weaker spot demand and added downside follow-through. Second, Strategy sold 32 BTC (~$2.5M), supplying additional BTC to the market. Even though Strategy remains a major long-term holder, announcements of corporate selling tend to shift positioning toward caution.
The liquidation data (~$155M, ~94% long liquidations) suggests leverage is being forced out, which can accelerate declines in the short term. Similar dynamics have played out in prior cycles when ETF flows turned negative and leveraged longs were liquidated: price often chops lower before finding a base, while volatility stays elevated.
For longer-term stabilization, traders will watch for (1) ETF outflows slowing or reversing and (2) whether further Strategy BTC sales materialize. If those conditions improve, the bearish impulse can fade; if they persist, downside risk remains higher than average.