Bitcoin plunges to 2017-level lows amid institutional selling, 13% drop since June 1; experts warn of prolonged bear market Bitcoin fell 13% since June 1, hitting its lowest level since 2017 as institutional investor Strategy Corp. Offloads 840,000 BTC, triggering liquidity crunches. The decline reflects broader market skepticism toward crypto’s long-term viability.
The sharp correction underscores growing institutional caution. Strategy Corp., which held 840,000 BTC as of Q1 2026, reportedly initiated a phased sell-off to diversify its portfolio, according to Bloomberg. This move follows a 22% decline in Bitcoin’s 30-day trading volume, signaling reduced retail participation. At $27,800 on June 4, Bitcoin’s market cap fell to $548 billion, a 19.3% drop from its May 2026 peak.
How Institutional Rebalancing Reshaped Crypto Dynamics
Strategy Corp.’s strategy mirrors broader shifts in asset allocation. The firm’s 840,000 BTC holdings—valued at $22.5 billion at May’s high—now represent 14.7% of its total assets, up from 9.2% in early 2026. This reallocation reflects a “risk-off” posture amid rising U.S. Treasury yields and tighter monetary policy. The 10-year note yield climbed to 4.87% on June 3, the highest since 2007, according to
