Bitcoin fell to its lowest level since February on Wednesday as record exchange-traded fund outflows and anticipated blockbuster listings pulled capital away from digital assets worldwide.
The world’s largest cryptocurrency dropped to $65,385 during trading, a decline of more than 6 percent in 24 hours. That left Bitcoin roughly 48 percent below its all-time high of approximately $126,200, reached in October 2025, and extended a losing streak weighing on the broader crypto market since mid-May.
US spot Bitcoin exchange-traded funds (ETFs) intensified the pressure. Those products recorded outflows totalling between $2.8 billion and $3.5 billion over 11 consecutive trading days, the longest redemption streak since the funds launched in January 2024. Assets under management across the group contracted from approximately $104 billion to roughly $94 billion in under two weeks. BlackRock’s iShares Bitcoin Trust (IBIT), the largest such product, posted a single-day outflow of $440 million on the final trading session of May alone.
The capital leaving crypto is partly moving toward equity markets and high-profile initial public offerings (IPOs). Analysts at Singapore-based trading firm QCP identified the central issue directly: “Crypto is facing competition for capital as equity markets continue to outperform.” Upcoming listings from companies including SpaceX, OpenAI and Anthropic have drawn particular investor interest, giving both institutional managers and retail participants compelling alternatives to holding Bitcoin.
Equity markets offered a sharp contrast on the same day. The S&P 500 and Nasdaq 100 both closed at records on Tuesday, while Asian stocks mostly rose with Japan’s Nikkei 225 hitting a fresh record on Wednesday. Those gains reinforced the attractiveness of equities at a moment when crypto sentiment was already fragile.
Leveraged positions aggravated the decline. More than $1.8 billion in forced liquidations occurred in a single day, the largest such event since February 2026, with long positions accounting for $1.35 billion of that total.
Market watchers now treat $65,000 as the immediate line of defence. Traders view that level as crucial before a potential test of $60,000. Several analysts raised that scenario this week as outflows continue and institutional demand shows no clear sign of recovery.
The sustained withdrawal over 10 to 11 consecutive days represents a significant institutional exit that has gradually weakened the market, setting this decline apart from sharper but shorter corrections seen earlier in the year. With major indices at records and some of the most anticipated private company listings in years drawing investor focus, Bitcoin faces persistent competition for a pool of risk capital that has rarely felt more finite.
