Bitcoin’s Drop Below $70,000 Draws Strong Buying as Traders Accumulate Nearly 600,000 BTC

Bitcoin fell below $60,000 this month, prompting investors to reassess their entry costs. On-chain changes in wallet holdings showed that buying was not concentrated in a single group: retail investors, large holders and whales all increased their positions. The shift suggests coins are moving rapidly from sellers to long-term holders, potentially affecting future supply and price volatility.

The latest data showed that wallets of all sizes bought a combined net total of nearly 260,000 BTC in the 10 days after Bitcoin lost the $60,000 level. Related reports described the accumulation as more than 250,000 BTC. A gauge of market buying activity also rose to its highest level during the observation period, showing that investors large and small viewed the decline as an opportunity to build positions. The concentration of holdings accelerated markedly.

Strategy, formerly MicroStrategy, has allocated heavily to Bitcoin through its corporate balance sheet since 2020 and had long maintained a buy-only stance, making its moves a gauge of institutional confidence. Its first reduction in nearly four years, though extremely small, amplified market concerns as spot ETFs continued to see outflows. BitMine moved in the opposite direction by adding ETH, highlighting a divergence in corporate crypto-asset strategies.

Strategy sold 32 BTC from May 26 to May 31, 2026, at an average price of $77,135, raising about $2.5 million to pay preferred-stock dividends. The sale represented only about 0.004% of its holdings of more than 843,700 BTC. On June 1, BitMine disclosed that it had purchased 26,497 ETH worth about $53 million. Bitcoin fell below $72,000 on June 2 and at one point approached $69,000.

Bitcoin has recently faced the dual pressures of spot-market selling and an escalation in the US-Iran military conflict, with Brent crude briefly rising to $95 a barrel. US spot Bitcoin ETFs have recorded $3.46 billion in net outflows since May 13, signaling capital flight from the crypto market and increasing the risk of cascading liquidations of leveraged positions.

On June 1, Bitcoin fell below $71,000 for the first time in seven weeks, liquidating about $276 million in leveraged long positions. However, the long-to-short ratio among Binance whales rose to 1.4 from 1.1 a week earlier, while the ratio on OKX climbed to 1.9 on Monday. Futures open interest across major exchanges held at $43.5 billion, suggesting professional traders were adding bullish positions on the dip, although a rebound still depends on an easing of spot-market selling pressure.

Bitcoin traded largely between $60,000 and $70,000 from February through April 2026, making $70,000 a key support level for gauging market demand. CoinGlass order-book data showed investors clustering limit buy orders above $70,000. The price would have a chance to stabilize and rebound only if that demand proved sufficient to absorb ETF redemptions and selling pressure on exchanges.

On May 29, CoinGlass recorded buy orders for 6,235 BTC between $70,000 and $72,000, worth about $443 million at the time. Another 1,012 BTC in orders, worth about $69 million, were placed at $68,505, bringing the total above $500 million. Bitcoin had fallen as low as $72,500 by May 31. Data from Velo and Hyblock showed spot buyers and leveraged longs entering the market, but trading volume remained insufficient to confirm a reversal.

Bitcoin fell below $75,000 as bullish derivatives positioning remained elevated and spot demand weakened, pushing the market into a short-term cooldown. On-chain “active distribution” indicates that holders are shifting toward selling. When exchange inflows rise as price discounts widen, correction risk typically increases. Long-term holders, however, have not retreated significantly, potentially providing market support.

Bitcoin fell as low as $72,500 on May 27. The Coinbase premium gap dropped to minus $94.95, a negative deviation of 1,083% from its three-month average. Binance’s seven-day average net inflow reached 1,496 BTC, up 528% from its three-month average, while crypto liquidations totaled $935 million that day. Long-term holders still controlled 84.3% of circulating supply, suggesting that some investors may be buying the dip.

Bitcoin is widely viewed as a gauge of global risk appetite, while the area around $77,000 also overlaps with the cost basis of short-term holders. Whether it can sustain a breakout has implications for spot ETFs, derivatives and onchain positioning. Checkonchain said more than 15% of the circulating supply was acquired between $74,000 and $83,000, making pullback risk a particular concern around this dense zone of underwater holdings.

Bitcoin briefly approached $77,500 on May 1. Open interest in Deribit put options with a $76,000 strike and a June 26 expiry rose 22.5%. Santiment data also showed that more than $770 million in BTC flowed onto exchanges during the previous week. By May 25, weekly net inflows stood at about 18,000 BTC, leaving the rebound exposed to potential selling pressure.

The 11 U.S.-listed spot Bitcoin ETFs have become an important gateway for institutional capital entering the crypto market, and their flows are also viewed as an indicator of price support. ETF redemptions, aggressive selling in spot and futures markets, and demand for options hedges are now rising in tandem, suggesting the correction may be more than a pullback after a rally.

Bitcoin fell about 6% from $82,000 to $76,800 and dropped below $77,000 again on May 22. SoSoValue data showed that the 11 ETFs had recorded more than $1.5 billion in outflows since May 7, including $648 million on May 18 alone. Glassnode said spot cumulative volume delta, or CVD, had fallen to negative $126.2 million, with key support at $74,000–$76,000.

Bitcoin has seen buying significantly outpace selling near $65,000, indicating that investors are actively buying the dip. This rare trading setup matters because sustained market support could ease near-term selling pressure and create conditions for a rebound from recent lows.

The latest data puts BTC’s key threshold at $66,700. Analysts say holding consistently above that level could trigger a relief rally toward $71,000, representing a potential gain of about 6.4%. The reports did not identify the data provider, the date of the figures or the observation period.