$1.76B Liquidated from Crypto Markets as Saylor Breaks “Never Sell” Promise

Crypto markets are in free fall. Between mounting tensions in the Middle East as Iran suspends all negotiations with the U.S. and Michael Saylor selling 32 $BTC, investors and traders are evacuating crypto.

In the biggest liquidation event since February 5, over $1.7B dollars in leveraged positions have been wiped out in the last 24 hours. Bitcoin ETFs are on track to record their biggest weekly outflows YTD, and majors like $SOL have slumped to its lowest price since December 2023.

Despite plummeting sentiment towards $SOL, institutional allocators are confident in the asset’s future. With $SOL ETF flows remaining positive, Solana ecosystem altcoins are shrugging off the debilitating price action and showing strength in a sea of red.

Bitcoin Dips Below $67k, Down 18% from May Highs

Michael Saylor, Bitcoin’s most outspoken evangelist, has walked back his promise to “never sell” $BTC, trimming Strategy’s $56B reserve and disclosing the firm’s first $BTC sale since 2022. 

While insignificant when compared to its total holdings, Strategy’s 32 $BTC sale has inflicted chaos on crypto markets, sparking a downward plunge that was only further exacerbated by reports of the suspension of negotiations between the U.S. and Iran.

Over-leveraged markets have only intensified $BTC’s decline. According to Coinglass data, over $1.76B has been liquidated from crypto markets in the past 24 hours. Wiping out over $1.53B in longs, today’s bloodbath represents the market’s biggest liquidation event since February 5th.

Adding to Bitcoin’s woes, ETFs are suffering some of their strongest outflows in recent memory. Just two days into the weekly timeframe, Bitcoin ETFs have already witnessed over $1B in outflows. Recording over $500M in daily outflows, the current momentum suggests that $BTC ETFs could be on the cusp of their worst week so far this year, based on Sosovalue data.

After holding strong through $BTC’s earlier sell-offs, major altcoins like $SOL have finally caved to downward pressure. Declining prices across the market briefly dragged $SOL below $73, marking the asset’s lowest price point since December 2023.

Meanwhile, Strategy is currently underwater to the tune of over $7B on its Bitcoin holdings, with analysts and commentators suggesting that there may be more sales to come over the summer.

$SOL ETFs Show Resilience

Despite $SOL price melting to lows not seen over two years, Solana ETF flows remain encouraging. In stark contrast to floundering sentiment towards Solana, ETF flows are consistently positive, suggesting that institutional allocators see this week’s turmoil as an opportunity to gain further exposure.

As of June 2nd, Solana ETFs have recorded 21-straight days without outflows, signaling strong demand from investors and optimism towards the asset’s future. 

While not explicitly singling out Solana, Bitwise CEO Hunter Horsley remarked that current conditions mark an unprecedented time in crypto history, wherein TradFi players and institutional allocators are more fundamentally bullish on the space than crypto natives.

Solana Eco Tokens Hold Strong 

While $BTC, $SOL, and other majors suffer debilitating drawdowns and brutal sell-offs, Solana ecosystem tokens are demonstrating considerable strength. 

Moving against the wider market, Solana-based tokens like $JTO, $JUP, and the recently launched $SLX have starkly outperformed $SOL on a weekly timespan. 

Price outperformance at Solana’s app layer reinforces the thesis that traders and investors are optimistic on the ongoing growth of Solana’s ecosystem. Additionally, upcoming governance proposals like SIMD-0547 aim to accelerate $SOL burn rate by adding dynamic base fees to various transaction types, ensuring that heightened activity at the app layer will result in more deflationary economics for $SOL.

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