Bitcoin trading below $63,000 reflects a global financial scene that has run out of liquidity, according to Strike CEO Jack Mallers speaking at BTC Prague this week. Mallers argued that Bitcoin's decline from above $100,000 a year ago is a signal, not noise, pointing to University of Michigan consumer sentiment at an all-time low while the S&P 500 sits at record highs as evidence that central intervention has broken equity as a signal. "Bitcoin is the closest thing we have to the monetary reflection of truth," Mallers said, describing it as "the only honest read on a global financial scene that has run out of liquidity." He framed the current selling pressure as "a world selling what it can, not what it wants," with nations funding wars, AI buildouts and deficit spending simultaneously while individuals are late on credit card bills and rent.
Bitcoin is experiencing a dual institutional demand collapse from both spot ETFs and digital asset treasuries, compounding the selling pressure that has driven the cryptocurrency from $74,000 to below $60,000 in recent weeks. According to Glassnode analysis, corporate treasury firms have seen their daily Bitcoin purchases drop from peaks above $500 million earlier this spring to minimal levels this month, removing a key source of marginal demand. The U.S.-listed spot Bitcoin ETFs have recorded more than $5.7 billion in net outflows since mid-May, with Wednesday's outflow of $213.85 million continuing the sustained selling pressure. As Glassnode notes, while companies remain net buyers overall, the decline in accumulation suggests this cohort is becoming more cautious, removing another critical source of institutional support during the current market weakness.
Mallers publicly questioned Strategy's perpetual preferred instruments, arguing the company must now choose which stakeholder group to disadvantage every time it needs liquidity. The company now carries four classes of claimants, including bitcoin, common equity, perpetual preferred stock, and debt holders, with the perpetual preferreds being non-callable and carrying an 11.5% coupon. Strategy sold 32 BTC last week, its first sale since late 2022, to fund distributions on its perpetual preferred stock, then purchased 1,550 BTC the week after. Mallers noted that paying that bill forces a choice every time - selling bitcoin satisfies common shareholders, preferred holders, and debt holders, but damages bitcoin and bitcoin holders. "How do you make the whole capital stack happy?" Mallers asked, declining to use perpetual preferred instruments at any company he has founded citing his own incomplete understanding of their long-term dynamics.
According to 99Bitcoins analysis, Bitcoin is currently trading between $62,000 and $63,000 with RSI near 25.7, showing deep oversold conditions on the 14-day reading but lacking volume confirmation typically required for genuine reversals. Key support levels are identified at $62,276 and $60,572, while resistance clusters between $63,980 and $65,683. The $60,000 level represents the psychological threshold where mainstream crash narratives peak and where the 2026 Bitcoin narrative faces its most severe test. Wintermute noted that Asia and Europe remained broadly balanced throughout the period, with the selling entirely U.S.-led, removing the market's primary support layer. AMBCrypto analysis suggests Bitcoin-to-global M2 ratio at 0.94% may need to fall further into the blue region before global liquidity eventually rotates into risk assets.
The selling pressure has extended beyond ETFs to broader market dynamics, with Bitcoin exchange reserves rising from $237.4 billion around May 15 to roughly $241.4 billion at the time of writing. As reported by AMBCrypto, rising exchange balances typically weigh on Bitcoin's performance, as the additional $4 billion in BTC can be easily converted into other assets. The Coinbase Premium Index at -0.07 indicates that US investors are paying less for Bitcoin than global buyers, a sign of weakening domestic demand. Market-wide sell-off lifts exchange reserves, with the additional supply pressure contributing to Bitcoin's continued decline. Global economic conditions are also weighing on risk assets like Bitcoin, as escalating tensions between the U.S. and Iran intensify, adding to the challenging macro environment.
