Bitcoin is facing one of its most severe liquidity drains since the launch of spot ETFs, with June on track to set a historic negative record. The price of BTC has fallen below $60,000, and U.S. spot Bitcoin ETFs have bled $4.06 billion in net outflows this month alone, surpassing the previous record of $3.56 billion set in February 2025. The latest weekly outflow of $1.79 billion is the second-highest since these products began trading in January 2024.
The exodus is not limited to Bitcoin. The Kobeissi Letter reports that gold and Bitcoin ETFs together have lost $12 billion in cumulative outflows since April. The largest U.S. gold-backed ETF (GLD) is down 13% from the start of April, while the biggest Bitcoin ETF (IBIT) has declined 12% over the same period. This contrasts sharply with the broader U.S. ETF market, which attracted over $1 trillion in net inflows in 2026.
The money flowing out of gold and Bitcoin appears to be rotating into semiconductor stocks. U.S. semiconductor ETFs have gathered $20 billion in cumulative inflows within the same timeframe, with SOXX and SMH surging 81% and 60%, respectively. This rotation accelerated in mid-May and continued through June, underscoring a shift in retail investor sentiment away from traditional safe-haven assets and into growth-oriented tech sectors.
Macroeconomic headwinds are compounding Bitcoin's woes. The Federal Reserve’s hawkish stance, persistent inflation, and a strengthening U.S. dollar continue to pressure risk assets. Markets are beginning to price in possible rate hikes later this year, while geopolitical tensions around the Strait of Hormuz have added to the cautious mood. Bitcoin is down roughly 30% year-to-date and is poised to close Q2 with a 13% loss—only the third time in history it has posted back-to-back quarterly losses.
The rout has hit institutional proxies as well. MicroStrategy (MSTR) shares have tumbled 45% this year. Crypto analyst Ted Pillows warns that Bitcoin could still shed 60-65% of its value before finding a bottom, comparing past cycles where BTC dropped 87% in 2015, 84% in 2018, and 78% in 2022. With June's outflows pushing total H1 net redemptions to roughly $5 billion, indicators of institutional demand are flashing red. All eyes now turn to Friday’s U.S. employment report for further clues on the Fed’s next move.
