Bitcoin ETF Withdrawals Reach $3.45B in 11-Day Streak (BTC)

Bitcoin ETF withdrawals just hit a milestone that should worry anyone holding BTC. U.S. spot Bitcoin exchange-traded funds recorded $483.8 million in net redemptions on Monday, stretching a withdrawal streak to 11 consecutive trading days and pushing cumulative outflows during that run to $3.45 billion, according to data from SoSoValue. The selloff didn’t arrive from one direction, it came from everywhere at once.

Bitcoin ETF Withdrawals Top $3.45 Billion in 11-Day Streak

BlackRock’s IBIT was responsible for most of the damage on Monday, with BlackRock IBIT 440 million single-day outflows totaling $440.3 million, nearly 91% of the day’s total net outflows across all U.S. spot BTC ETFs. That’s not a rotation. That’s a rout.

Among all the funds tracked, only Morgan Stanley‘s MSBT managed to attract fresh capital, pulling in a modest $6.14 million. Every other fund posted net zero or net negative. The contrast is striking: one small fund swimming upstream while the rest of the market flushes capital out the door.

This is what the 11-day losing streak looks like up close. The cumulative $3.45 billion in outflows during this stretch eclipses May’s already ugly picture, the funds recorded $2.43 billion in net redemptions across the full month of May, their largest monthly outflow since November 2025. Monday’s single-day figure alone represents roughly 20% of May’s entire monthly total.

Why Did BTC Drop Below $71,000 on Monday?

What caused Bitcoin to fall below $71,000?

Bitcoin fell below $71,000 on Monday, touching an overnight low near $70,200 before recovering slightly to around $70,750. The cryptocurrency was down 3.6% over the prior 24 hours, a meaningful single-day drop that triggered a wave of forced selling in derivatives markets.

Three distinct pressure points converged. First, the ETF outflows themselves created a persistent bid-side vacuum. When the largest institutional vehicles for BTC exposure are consistently selling, spot markets feel it. Second, geopolitical headlines hit risk appetite hard: Iran suspended negotiations with the United States following Israel’s military operations in Lebanon, injecting fresh uncertainty into global markets. U.S. President Donald Trump pushed back on the narrative, posting on Truth Social that talks were still moving forward.

“Talks are continuing, at a rapid pace, with the Islamic Republic of Iran,” Trump wrote on Truth Social on Monday.

Third, and this one deserves more attention than it’s getting, Strategy broke a long-standing promise. The company, once the loudest institutional voice for holding Bitcoin forever, disclosed in a regulatory filing that it had sold BTC for the first time in years.

Talks are continuing, at a rapid pace, with the Islamic Republic of Iran.

Strategy’s 32 BTC Sale Rattled Market Confidence

Call it symbolic, call it a canary, either way, Strategy’s Form 8-K was a gut punch for Bitcoin bulls. According to the Strategy 32 BTC sale Form 8-K May 2026 filed with the SEC, the company sold 32 BTC between May 26 and May 31 at an average price of $77,135, generating approximately $2.5 million in proceeds earmarked for preferred stock distributions.

In the grand scheme of Strategy’s holdings, 32 BTC is a rounding error. The company holds hundreds of thousands of coins. But the market doesn’t trade on math alone, it trades on narrative, and Strategy’s narrative has always been that it doesn’t sell. Ever. That narrative just cracked.

The psychological damage from this disclosure is real. Traders who built confidence partly on Strategy’s public commitment to holding now have to recalibrate. If Strategy sells when it needs cash for preferred stock distributions, what happens when the pressure is larger? The market started asking that question on Monday, and the answer wasn’t comfortable.

What Do the $388M in Liquidations Mean for BTC Price?

How do leveraged liquidations affect Bitcoin’s price?

The drop below $71,000 didn’t just hurt spot holders. Derivatives traders took a severe hit. According to Bitcoin leveraged long liquidations 388 million Coinglass, more than $388 million in leveraged long positions were forcibly closed during the downturn, a liquidation cascade that accelerated the very decline it was responding to.

This is the self-reinforcing mechanism that makes BTC crashes sharper than they look on paper. When Bitcoin breaks through a key support level, exchanges automatically sell the underlying asset to close failing leveraged positions. That forced selling adds fresh supply to an already weak market, pushing prices lower still, which then triggers the next batch of liquidations. Monday’s $388 million wipeout followed exactly that script.

Market analysts noted that capital rotation out of digital assets and into cash positions was already underway before the geopolitical headlines hit. Risk aversion was building. The Iran-U.S. diplomatic breakdown simply lit a fuse that was already laid.

For BTC to find stable footing, buyers need to show up at current levels and absorb both the ETF selling pressure and any residual liquidation overhang. As of Monday, Bitcoin was hovering just above $70,000. That’s a level that has served as support before, but the context heading into this test is considerably worse than past visits to this price zone. The ETF streak, the Strategy disclosure, the geopolitics. Three different headwinds, same direction.

This article is for informational purposes only and does not constitute investment advice. Every investment and trading decision involves risk. Readers should conduct their own research before making any financial decisions.