Bitcoin fell to its lowest level in more than seven weeks after Strategy, the largest publicly traded corporate holder of the cryptocurrency, sold part of its holdings for the first time in over three years. The digital asset market also faced additional pressure from escalating tensions between the United States and Iran, as well as ongoing uncertainty surrounding diplomatic discussions between the two countries.
Bitcoin declined by approximately 3.6% to trade at $71,192, while cryptocurrency related exchange traded funds (ETFs) experienced significant institutional outflows exceeding $3 billion over the past three weeks.
In a regulatory filing, Strategy disclosed that it sold 32 Bitcoin between May 26 and May 31 at an average price of $77,135 per coin, generating around $2.5 million in proceeds. This marks the company’s first Bitcoin sale since late 2022. Strategy stated that the proceeds would be used to fund preferred stock dividends. As of the end of May, the company held a total of 843,706 Bitcoin with an average acquisition cost of $75,699 per coin.
The sale comes as U.S. spot Bitcoin ETFs continue to experience heavy capital withdrawals. According to data from SoSoValue, investors pulled approximately $1.4 billion from these funds last week alone, marking the largest weekly outflow since late January.
The funds have now recorded three consecutive weeks of outflows exceeding $1 billion per week, highlighting weakening institutional appetite for digital assets. A major portion of these withdrawals came from a $1.26 billion sell-off in BlackRock’s IBIT fund, with market estimates suggesting that a large investor executed a rapid exit from the market.
Meanwhile, U.S. President Donald Trump stated that discussions with Iran remain ongoing at a fast pace, denying reports that the talks had been officially suspended.
The broader cryptocurrency market also came under pressure. Ethereum fell by 0.8% to $1,996, while XRP declined 3% to $1.29. Solana lost 1.9%, Cardano dropped 2.2%, and BNB fell by approximately 2.6%.
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