Sell-off Strategy Triggers Chain Reaction, BTC Plunges Over 15% in Three Days

BlockBeats News, June 4th - Looking back, after Strategy's previous test sale of 32 bitcoins (equivalent to $2.47 million), the market sentiment quickly deteriorated. In the following three days, the price of Bitcoin dropped by a total of approximately $11,400, a 15.6% decrease, causing a total market capitalization loss of around $228 billion.

In terms of funding, the Bitcoin spot ETF saw a cumulative net outflow of $1.45 billion in the three trading days following Strategy's sale announcement, with a continuous outflow for 13 consecutive trading days, totaling $4.37 billion.

Meanwhile, various on-chain and institutional developments further exacerbated market concerns. Mt. Gox transferred some bitcoins to the Bitstamp exchange; bitcoins from Tether's reserves were first moved to the Bitfinex exchange; and the crypto asset management firm Abraxas Capital also started reducing its Bitcoin holdings.

Market analysts believe that although Strategy's sale was limited in scale, as one of the world's largest corporate Bitcoin holders, its selling behavior amplified market sentiment, triggering institutional outflows and a domino effect of long-side deleveraging.