Bitcoin Falls Below $70,000 as Forbes Warns of Deeper Correction

Bitcoin fell below $70,000, stoking concern about a deeper correction. Selling by Strategy, formerly MicroStrategy, and outflows from spot Bitcoin exchange-traded funds have added to downside pressure, Forbes reported.

Forbes said on June 2 that Bitcoin had slipped under the $70,000 level. The publication said the cryptocurrency was down about 50% from the record high of $126,000 reached in October last year.

CryptoQuant analysts said Bitcoin is showing bearish signals after falling below $70,000. They said supply from investors who bought the cryptocurrency six to 12 months ago could become a key obstacle to any recovery.

"That exchange inflow needs to be absorbed," the analysts said. Otherwise, Bitcoin could face a deeper corrective wave. Some investors who held through the sharp selloff earlier this year appear to have moved holdings onto exchanges as prices recovered to around $80,000, creating potential selling pressure.

Strategy's Bitcoin sale has also been cited as a market overhang. Forbes said the company sold 32 Bitcoin for $2.5 million. The move was described as an effort to secure flexibility for dividend payments and to show the market that Bitcoin sales were possible.

Michael Saylor, Strategy's co-founder, said during the company's first-quarter earnings call on May 1 that it would probably sell some Bitcoin to pay dividends. He said the plan was not especially meaningful from an economic standpoint and suggested the company could buy Bitcoin again after the sale.

Still, the market is treating the transaction as a sign that Strategy's holding approach may be changing. Delphi Digital analysts said Bitcoin's weakness had turned Strategy into a stress test for the market. Investors now understand the company is no longer viewed as a purely one-way accumulation vehicle, they added.

Outflows from spot Bitcoin ETFs are also adding to downward pressure. Nick Puckrin, co-founder of Coin Bureau, said momentum has not been favorable for Bitcoin this week. Spot Bitcoin ETFs have seen cumulative outflows of $2.8 billion, while Saylor's sale of 32 Bitcoin last week has added to downside pressure on prices, he said.

Puckrin also pointed to Bitcoin's decline even as U.S. stocks continue to hit record highs on optimism over artificial intelligence. Bitcoin is now being driven more by crypto-specific investor sentiment, and that sentiment is close to very weak levels, he said.

He said Bitcoin needs to hold above $70,000 to avoid a larger decline. He added that the risk of war between the U.S. and Iran, along with expectations for a SpaceX initial public offering, is drawing speculative money away from other risk assets.

Whether Bitcoin can reclaim $70,000 is emerging as the key near-term gauge for market direction. ETF flows, any additional trades by Strategy and geopolitical risks from the Middle East are also expected to shape investor sentiment.