Key facts
- Bitcoin price fell 14% in seven days, reaching levels not seen since February.
- Standard Chartered's global head of digital assets research, Geoff Kendrick, believes the market low is 'almost in'.
- MicroStrategy sold 32 Bitcoin between May 26 and May 31, generating approximately $2.5 million.
- U.S. spot Bitcoin ETFs have recorded 13 consecutive days of net outflows, totaling approximately $3.45 billion.
- May 2026 saw cumulative spot ETF outflows reach $2.30 billion, marking the worst month of 2026 for outflows.
Bitcoin experienced a significant sell-off, shedding 14% in seven days and falling to levels not seen since February. This decline was attributed to institutional outflows, leverage liquidations, geopolitical pressure, and a notable sale by MicroStrategy. Despite the downturn, Standard Chartered's global head of digital assets research, Geoff Kendrick, advised clients that the bear market may be in its final stages, suggesting the current low is 'almost in' and could represent a desirable buying zone for future gains.
Bitcoin traded around $63,739 on Wednesday, down from a 24-hour high of $67,416.50, and touched a session low near $61,463. This drop placed Bitcoin approximately 51% below its all-time high of $126,277, set in October 2025. The market confidence was shaken by a Monday SEC filing revealing MicroStrategy sold 32 Bitcoin between May 26 and May 31 for approximately $2.5 million at an average price of $77,135. This marked the firm's first net reduction in Bitcoin holdings in years, a departure from co-founder Michael Saylor's previous stance. The sale was intended to fund dividend obligations on MicroStrategy's STRC preferred shares.
The market reacted sharply, with Bitcoin falling below $72,000 on the day of the filing. MicroStrategy's stock dropped nearly 6%, and STRC shares traded around $94. U.S. spot Bitcoin ETFs have now recorded 13 consecutive days of net outflows, totaling about $3.45 billion, with the week ending May 29 seeing $1.42 billion in withdrawals, the third-largest weekly withdrawal on record. May 2026 cumulative spot ETF outflows reached $2.30 billion, making it the worst month since their launch in early 2024.
Kendrick outlined three reasons for his optimistic outlook. Firstly, he cited MicroStrategy's behavior in December 2022, when the firm purchased more Bitcoin two days after a sale, suggesting a similar buyback of up to 100 times the recent 32 BTC sale could occur. A purchase as early as the following Monday would signal a tentative low. Secondly, spot ETF holdings have remained structurally strong, with cumulative net inflows since inception at $54.2 billion and total BTC held by the 11 U.S.-listed funds broadly unchanged at approximately 674,000 BTC.