Bitcoin had been moving higher during April and most of May, climbing above $80,000. But after hitting resistance at the 200-day EMA, the price started trending lower, and the decline accelerated over the past week.

Bitcoin is now trading near key support around $62,000 to $63,000. If it can hold above $62,000 and trend higher in the next few days, this will increase the odds that the correction is over. If this level fails, the next major support price is around $50,000.

The RSI momentum indicator dropped to deeply oversold levels around 15 on Friday. It has bounced to 26 currently, but is still oversold. This suggests that the downside move could be exhausted. The price is below all key EMAs, which does not usually persist for long.

Stock market weakness it dragging down crypto, but the biggest catalyst appears to be Saylor’s Strategy selling Bitcoin for the first time. Strategy only sold 32 Bitcoin ($2.5 milion), an insignificant amount used to fund preferred stock dividends. But it still spooked the markets, given how much Bitcoin the company holds (843,706). Saylor has already hinted that he has begun buying the dip, so his small sale triggered a big price drop, allowing him to buy Bitcoin at a significant discount.

This panic selling cascaded into record institutional selling pressure: U.S. spot Bitcoin ETFs saw $2.3–4+ billion in net outflows in May (the largest monthly outflow of 2026), with streaks of 9–13+ consecutive days of redemptions totaling billions. This mechanically forced sales of the underlying Bitcoin.

But Bitcoin isn't crashing below $60k because Saylor sold 32 BTC. It's crashing because $19 trillion of new AI market cap was created in 12 months... 13x the size of Bitcoin. The most liquid risk asset on earth is being drained to fund the biggest IPO cycle since 2000.

In addition, hotter-than-expected U.S. inflation data (CPI/PPI) driven by energy/oil price spikes from U.S.-Iran/Middle East tensions (e.g., Strait of Hormuz disruptions), also put pressure on most asset classes on Friday. This is due to reduced expectations for Federal Reserve rate cuts (some officials even floated rate hikes), a strengthening of the U.S. dollar, higher bond yields, and weaker risk assets like Bitcoin.

Takeaway: This was primarily a macro-driven correction amplified by ETF mechanics and sentiment triggers — not a crypto-specific failure. Bitcoin remains highly sensitive to interest rate expectations, dollar strength, and institutional flows. Markets can rebound quickly on positive news (e.g., cooling inflation or ETF inflows), which I expect to occur sometime in the next few months.