Quick overview
- Bitcoin faced renewed selling pressure due to strong U.S. employment data, accelerating ETF outflows, and deteriorating investor sentiment.
- Despite initial optimism from regulatory advancements, Bitcoin’s price retreated sharply as macroeconomic factors took precedence.
- Institutional demand weakened with significant net outflows from Bitcoin ETFs, while corporate interest in Bitcoin remains a positive long-term factor.
- The market is currently volatile, with heightened liquidations in derivatives and a cautious outlook as investors await further economic data.
Live BTC/USD Chart
BTC/USD
Bitcoin came under renewed selling pressure as stronger-than-expected U.S. employment data boosted the dollar, ETF outflows accelerated, and several market developments combined to weaken investor sentiment.
Bitcoin Rally Loses Momentum
Bitcoin began May on a positive note after the U.S. Senate Banking Committee advanced the Clarity Act, legislation aimed at providing a clearer regulatory framework for digital assets. The proposal was viewed as one of the most significant regulatory developments for the cryptocurrency industry in years and initially fueled optimism that institutional adoption could accelerate under greater legal certainty.
The positive momentum, however, proved short-lived. Selling pressure gradually intensified as investors shifted their attention from regulatory progress to macroeconomic developments, institutional fund flows, and broader market risk. As sentiment deteriorated, Bitcoin surrendered its earlier gains and retreated sharply, highlighting how fragile confidence remains despite improving regulatory prospects.
The reversal demonstrated that while regulatory clarity remains a long-term positive for the industry, short-term price action continues to be driven largely by monetary policy expectations and institutional capital flows.
Strong U.S. Jobs Report Boosts the Dollar
One of the biggest catalysts behind Bitcoin’s decline came from the latest U.S. labor market report.
The U.S. economy added 172,000 jobs during May, comfortably exceeding market expectations and reinforcing the view that the labor market remains resilient despite elevated interest rates. Previous months were also revised higher, while the unemployment rate held steady at 4.3%, suggesting the economy continues to show underlying strength.
For cryptocurrency markets, stronger economic data often creates headwinds. Investors increasingly believe a resilient labor market gives the Federal Reserve more flexibility to keep interest rates elevated for longer in its effort to contain inflation.
Higher interest rates generally strengthen the U.S. dollar and increase Treasury yields, making speculative assets such as cryptocurrencies less attractive. Following the employment report, Bitcoin sold off sharply as investors reduced exposure to risk assets and reassessed expectations for future Federal Reserve policy.
Strategy’s Bitcoin Sale Draws Market Attention
Investor sentiment was also affected after Michael Saylor’s Strategy disclosed that it had sold 32 Bitcoin between May 26 and May 31.
According to regulatory filings, the company sold approximately $2.5 million worth of Bitcoin to help fund dividend payments for preferred shareholders. Although the transaction represented only a tiny fraction of Strategy’s holdings, it attracted considerable attention because it marked the company’s first Bitcoin sale since 2022.
The disclosure raised questions among investors accustomed to viewing Strategy as one of Bitcoin’s strongest long-term holders.
Despite the sale, Strategy continues to hold approximately 843,706 Bitcoin valued at more than $63 billion, reaffirming its position as the world’s largest corporate Bitcoin holder. Nevertheless, the timing of the sale added to already fragile market sentiment during a period of declining prices and weakening institutional demand.
Technical Structure Defines the Next Inflection Point
From a technical perspective, Bitcoin’s price behavior early in 2026 shows that it tried to resume the uptrend following a period retreat in late 2025, which sent Bitcoin decisively below the 100-week moving average for the first time since 2023 and signaling that the market had entered a corrective phase. The decline stabilized for a while and we saw a rebound off the 200-week moving average around $60,000, reinforcing the importance of that level as long-term structural support.
BTC/USD Chart Weekly – The 100 SMA Rejected the Price
In the following weeks the price has rebounded, however the 100 weekly SMA rejected the price in May and BTC has reversed lower again. The price has broken below the 200 SMA now, but it trades above the $60k level. A sustained break below it could open the door to deeper downside toward the psychologically important $50,000 region. Conversely, the ability to push above the $80,000 zone increases the probability of a gradual recovery toward $100,000 and, over time, the $100,000–$126,000 region.
U.S. Reserve Proposal Changes the Long-Term Outlook
Another closely watched development came from Washington after Representatives Nick Begich and Jared Golden introduced the American Reserve Modernization Act (ARMA).
The proposal would require government-owned Bitcoin to remain locked in reserve for at least twenty years, preventing the Treasury from selling or transferring those holdings during that period. Even after the lock-up expires, sales would be limited to no more than 10% of reserves over any two-year period.
Unlike previous legislative proposals, ARMA does not require the government to purchase additional Bitcoin. Instead, it focuses on preserving existing holdings while studying budget-neutral methods of expanding reserves through seized digital assets, forfeitures, tariff revenues and other government resources.
The legislation also proposes quarterly proof-of-reserve disclosures and independent audits, increasing transparency around government cryptocurrency holdings.
While the proposal could reduce future selling pressure from government-owned Bitcoin, traders noted that the absence of mandatory purchases limits its immediate bullish impact on prices.
ETF Outflows Continue to Weigh on Sentiment
Institutional demand remained another major concern for the cryptocurrency market.
Spot Bitcoin exchange-traded funds experienced another round of sizeable net outflows, extending a multi-day streak that has seen more than $1.5 billion leave the sector.
Several of the largest funds experienced continued withdrawals, pushing total assets under management below the $100 billion mark for the first time in weeks.
The sustained outflows suggest some institutional investors have become more cautious amid higher interest rates, increased market volatility and uncertainty surrounding the Federal Reserve’s next policy moves.
The trend has reduced one of Bitcoin’s strongest sources of buying support that had previously helped drive prices higher following the launch of spot ETFs.
Volatility Increases Across Derivatives Markets
Selling pressure became even more pronounced in cryptocurrency derivatives markets.
Hundreds of millions of dollars in long positions were liquidated over a single trading session as leveraged traders were forced to exit positions following Bitcoin’s decline. Liquidations heavily favored bullish positions, indicating that many investors had anticipated further upside before the market reversed.
At the same time, trading volumes and options activity increased as investors sought additional downside protection amid growing uncertainty.
The surge in liquidations amplified price swings and contributed to the heightened volatility seen across the broader cryptocurrency market.
Corporate Adoption Remains a Bright Spot
Despite recent market weakness, long-term corporate interest in Bitcoin continues to grow.
SpaceX recently disclosed that it holds 18,712 Bitcoin acquired at an average purchase price of roughly $35,300 per coin. Based on current valuations, those holdings have generated substantial unrealized gains, reinforcing the growing role of Bitcoin as a corporate treasury asset.
The disclosure served as a reminder that while short-term sentiment remains volatile, several large companies continue to view Bitcoin as a strategic long-term investment.
Outlook
Bitcoin enters the new week facing a challenging backdrop. Stronger U.S. economic data has strengthened the dollar and pushed Treasury yields higher, reducing appetite for risk assets across financial markets. At the same time, continued ETF outflows, heavy derivatives liquidations and cautious institutional positioning have added further pressure to prices.
Nevertheless, regulatory momentum in Washington continues to improve, and corporate adoption remains supportive over the longer term. Investors will now closely monitor upcoming U.S. inflation data and Federal Reserve expectations, as these macroeconomic factors are likely to remain the dominant drivers of Bitcoin’s near-term direction.
Skerdian Meta
Lead Analyst
Skerdian Meta Lead Analyst.
Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank’s local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
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