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Bitcoin image. / Courtesy of Reuters–Yonhap

Bitcoin has plunged more than 14% in just a week, rapidly freezing investor sentiment. The sharp decline is attributed to large‑scale capital outflows from U.S. spot Bitcoin ETFs combined with geopolitical risks in the Middle East, which have expanded risk‑averse sentiment. Experts caution against further downside, even while leaving room for a short‑term rebound.

On June 6, according to U.S. crypto exchange Coinbase, Bitcoin was trading at $62,772 as of 2:50 p.m., down an additional 1.58%. Compared with a week earlier, it fell 14.61%, and over the past month it has plunged 22.44%.

The biggest driver of the decline is institutional money leaving the market. U.S. spot Bitcoin ETFs recorded net outflows of about $2.3 billion in May, the largest monthly withdrawal this year. Outflows have continued for more than 10 trading days, signaling a sharp weakening of institutional appetite for risk assets.

Investor sentiment was further dampened when MicroStrategy (now “Strategy”), the Bitcoin‑holding company led by Michael Saylor, sold part of its holdings. The sale shocked the market, as the firm had been widely perceived as a symbolic buyer that “never sells.”

Geopolitical tensions in the Middle East remain a negative factor. Renewed U.S.–Iran conflict has heightened uncertainty around the Strait of Hormuz. Concerns over rising oil prices have revived inflationary pressure, weakening expectations for Federal Reserve rate cuts.

Experts expect volatility to remain high in the short term. Jeff Kendrick, head of digital asset research at Standard Chartered, wrote in a recent report: “ETF outflows and weakened institutional sentiment are short‑term burdens,” but maintained his long‑term forecast that Bitcoin could reach $100,000 by year‑end.

Some analysts warn Bitcoin could fall further to the $60,000 support level. Analyst Benjamin Cowen has suggested that the cycle’s bottom has not yet arrived, pointing to October this year as a possible trough.

Still, there is room for a short‑term rebound. If U.S. employment data, due June 6 (local time), comes in strong, Bitcoin may defend the $65,000 support and recover to $68,000. Analyst Nikita Kalmanovich predicted: “If geopolitical conditions improve and U.S. labor market data is favorable, Bitcoin could rebound to $73,200 or even $76,300.”

He added, however, “Such a rise should be viewed as a technical rebound within a broader downtrend.”

                                                                                                               Kim Min‑joo