1. The crypto market continues to slump, with Bitcoin losing $67,000

Since early this morning, Bitcoin has continued to fall, and has just fallen rapidly again, briefly falling below $66,000. As of press time, Bitcoin has hit a low of $65,450, a 24-hour drop of more than 7.05%. Ethereum followed suit, falling below $1,900 for a short period of time, hitting a low of $1,838.88, and falling more than 7.2% in 24 hours. Most mainstream currencies in the crypto market have experienced significant declines.

Coinglass data shows that in the past 24 hours, the entire network has been liquidated to US$1.78 billion, with long orders liquidated at US$1.597 billion and short orders liquidated at US$183 million, with the main liquidation of long orders. Among them, long orders in Bitcoin were liquidated at US$860 million, long orders in Ethereum were liquidated at US$445 million, and long orders in Solana were liquidated at US$84.3529 million. In the past 24 hours, more than 278,000 people around the world have been liquidated. The largest single liquidation order occurred in Hyperliquid - BTC-USD worth $27.4927 million.

Two major sources of demand that have traditionally played an important role in supporting Bitcoin pricesSpot ETFs and Strategy are simultaneously turning into price drags, further intensifying the pressure on the market. The AI ​​concept has stimulated U.S. stocks to continue to rise and break new highs repeatedly, and leading exchanges have begun to plan U.S. stock trading. These factors reflect the current extreme lack of liquidity support in the crypto market. The renewed deterioration of the situation in the Middle East has "exacerbated" the already fragile market and became the "last straw" that crushed crypto assets.

2. The "siphon" effect of the US stock market is significant, and exchanges enter US stock trading

Enthusiasm for AI infrastructure continues to drive funds into semiconductor and data center-related sectors. U.S. stocks closed higher for the ninth consecutive session. Alphabet announced that it plans to raise $80 billion in equity financing, including investment from Berkshire Hathaway, to support its massive AI expansion plan. Goldman Sachs analyzed that the catalyst for the U.S. stock market is this week’s large-scale capital raising in the technology field.

The S&P 500 index closed up 0.13%, hitting a record closing high for five consecutive trading days and closing above the 7,600-point mark for the first time. The Dow Jones Industrial Average closed up 0.45%, setting a record closing high for five consecutive days. The Nasdaq closed up 0.03%, barely continuing to hit a record closing high. Bitcoin has completely decoupled from the trend of technology stocks.

In addition, the leading crypto exchanges, led by Binance, have entered the U.S. stock trading market. Binance has recently announced that its users will be able to trade more than 8,000 US stocks and ETFs. Binance has unveiled an upcoming plan to allow customers to convert their stock holdings into crypto-like digital assets as part of its broader vision to become a "multi-asset financial super app." In addition, Binance has successively launched six U-standard U.S. stock perpetual contracts. (For details, please refer to Golden Finance’s previous article "From Ondo to Alpaca to bStocks: Binance’s on-chain U.S. stock ambitions") Prior to this, Coinbase had launched U.S. stock perpetual contracts, OKX had open sourced an AI agent trading toolkit, and Kraken had turned 100 U.S. stocks into on-chain assets.

The Capital Siphon Effect of the U.S. stock market on cryptocurrencies is mainly reflected in the diversion of liquidity and the shift in the focus of market narratives. U.S. stock technology giants led by AI are constantly attracting incremental funds originally belonging to the encryption market due to their more stable return rates and solid valuation logic, putting pressure on the encryption ecosystem. Andthe entry of the top exchanges in the encryption industry into the US stock trading market has amplified this effect, causing a large amount of liquidity originally in the encryption market to be lost and transferred to the US stock market.

3. Strategy "broke its promise" to sell coins, and cracks appeared in the treasury narrative

The crypto market's most representative Bitcoin treasury company Strategy disclosed on Monday that it sold approximately 32 Bitcoins and realized approximately US$2.5 million, marking the company's first reduction in holdings since the end of 2022. Compared to its total Bitcoin position of approximately US$59 billion, the scale of this sale is minuscule, but it breaks the company's long-standing minimalist strategy of "only buying, not selling" at a sensitive moment in the market. Jasper De Maere, an OTC trader at market maker Wintermute, said: "This round of selling seems to have been triggered by Strategy's disclosure of the sale of 32 Bitcoins. But the reality is that even without this news, the market momentum has already faded, and the participation of institutions on the OTC trading desk has also dropped to low levels." (For details, please refer to Golden Finance's previous article "What signals did Strategy release from never selling to selling 32 BTC for the first time")

In addition, According to Strategy’s official announcement, Strategy proposes to adjust STRC’s dividend distribution frequency from monthly to semi-monthly. If the proposal is approved and adopted, it is expected to shorten the reinvestment lag period, enhance liquidity and market efficiency, and improve price stability. The proposal requires a joint vote by both MSTR and STRC shareholders, and can only be passed if both shareholders vote in favor. According to the proposal timeline, voting began on April 28 and will end on the meeting day of June 8.

Michael Saylor's failure to adhere to the "only buy, not sell" strategy shows to a certain extent that "cracks" will appear in the former treasury narrative during the downturn of the cryptocurrency bear market. 32 Bitcoins is almost negligible for Strategy, but it caused an uproar in the entire crypto market.

4. ETF funds continue to outflow, with no signs of relief

On June 2,After the U.S. spot Bitcoin ETF recorded large-scale capital outflows in May, the trend of capital outflows further continued, with net outflows occurring for 11 consecutive trading days.

2. According to BIT analysis, Bitcoin has fallen 16% year-to-date and is entering a seasonal window with historically weak returns. Over the past decade, Bitcoin’s average June return has been just +0.7%, with the summer months typically dominated by choppy consolidation. However, this year's trend may not completely follow historical patterns. May is typically one of Bitcoin’s stronger months, but this year’s gains have been significantly lower than historical averages, raising the possibility of a seasonal reversal. At the same time, several important catalysts are about to be launched, including regulated crypto perpetual futures products in the United States and the Nasdaq CME crypto index futures planned to be launched on June 8. Although seasonal pressures remain, from a tactical perspective, Bitcoin may be close to a short-term bottom. If these catalytic factors bring new buying support, Bitcoin is expected to rebound.

3. Tom Lee stated that Bitmine’s Ethereum treasury’s daily staking income reaches US$1 million.

4. TD Cowen analyst Lance Vitanza said that the market’s interpretation of Strategy’s transaction as Strategy’s substantial reduction in Bitcoin positions is misleading. He believes that the transaction will have minimal impact on the economic level and will not change the company's core Bitcoin accumulation logic, so he maintains his $400 price target on MSTR stock unchanged.

5. Benchmark analyst Mark Palmer believes that Strategy will not rely on the sale of Bitcoin as the main source of funds to pay preferred stock dividends in the future, and is more likely to continue to supplement cash reserves through the issuance of shares. However, he noted that the sale demonstrates that the company’s Bitcoin reserves can serve as a “safety backstop” for preferred stock dividend payments if necessary.

6. Mark Connors, Chief Investment Officer of Risk Dimensions believes that this move reflects that Strategy has begun to prioritize maintaining the health of the capital structure rather than adhering to the absolute position of "never selling coins." He said this shows that Michael Saylor is willing to sell some Bitcoins when necessary to protect the interests of shareholders and creditors.

7. Citigroup strategists said that excessive bullish positions in U.S. technology stocks are exposing investors to the risk of a market reversal. The Citi team, including David Chavet, said continued enthusiasm for the artificial intelligence theme has pushed bullish market bets to the limit, making the Nasdaq 100 particularly vulnerable. "Concentrated long investing in the index 'increases the likelihood of profit-taking and prolonged unwinding of positions due to any negative factors,' and the risk of market downside is increasing." Since bottoming in late March, the S&P 500 is up 20%, while the Nasdaq 100 has soared 33%. According to the momentum indicator, the Nasdaq 100 has been overbought for nearly six weeks.

8. Bank of America believes that AI infrastructure construction is still in its early stages. As AI applications gradually spread from cloud computing vendors to enterprise customers, government agencies, and sovereign AI projects, the scale of global AI infrastructure investment is expected to further expand from the current approximately US$1 trillion to US$3-4 trillion by 2030. Against this background, the AI ​​data center, memory, semiconductor equipment and analog chip industries will all usher in new growth opportunities.