Bitcoin Down 43% From Trump-Era Peak as AI Stocks Drain Capital

Bitcoin shed 14–15% in the week ending June 5, 2026, its steepest weekly fall since FTX collapsed in November 2022, as a record wave of ETF redemptions, a violent rotation into AI semiconductor stocks, and the $75 billion SpaceX IPO roadshow pulled capital away from the world’s largest cryptocurrency at the fastest pace ever recorded.

The coin was trading near $62,000 on June 6, 2026, down 43% from the ~$109,350 level at which it traded on Trump’s inauguration day, January 20, 2025, and 51% below its confirmed all-time high of $126,198 reached on October 6, 2025. Not “late last year” as widely circulated. Early October. The peak reversed fast.

Bitcoin — Key Metrics (June 6, 2026)

The ETF numbers are now confirmed, and they are worse than any earlier figure cited. U.S. spot Bitcoin ETFs bled $3.4 billion in net outflows in a single week in early June, the largest weekly redemption since these products launched in January 2024. A 13-session consecutive outflow streak then extended that total to $4.33 billion, per Galaxy Research. Total assets under management in Bitcoin ETFs fell from $104 billion to $94 billion in under three weeks.

Key points on the ETF bleed:

• $3.4 billion net outflows in one week — all-time record for Bitcoin ETFs
• 13-session consecutive outflow streak — also a record
• $4.33 billion drained across those 13 sessions (Galaxy Research)
• $5.42 billion in the 20-day trailing window — heaviest reading ever in both dollar and coin terms
• 39,338 BTC and 42,941 BTC outflows set new 7-day and 10-day records, respectively.
• BlackRock, Fidelity, and Grayscale all saw significant redemptions

April 2026 had been the funds’ strongest month of the year, with $1.97 billion in inflows. That reversed completely inside six weeks

ETF Capital Flows—Bitcoin vs Semiconductors (2026)

Where the Money Is Actually Going

The semiconductor trade is not subtle. SOXX pulled in $5.5 billion in April 2026 alone, a single month, while Bitcoin ETFs were haemorrhaging across the same period. Goldman Sachs estimates AI-related capital spending hit an annualised $650 billion in Q1 2026 and could exceed $800 billion by year-end. Hyperscaler capex across the sector is forecast above $750 billion for the full year, with 75% directed specifically to AI infrastructure.

In that environment, the comparison with Bitcoin is brutal:

• SOXX up 87–105% year-to-date; Bitcoin down 43% from January 2025 level
• XSD (SPDR S&P Semiconductor ETF) delivered a 171% one-year return
• AIS (VistaShares AI Supercycle ETF) up 119% YTD and 229% since December 2024 inception
• Bitcoin is down roughly 51% from its own peak in the same period

SpaceX IPO: A $75 Billion Capital Drain Arriving June 12

This is not hypothetical. SpaceX publicly filed its S-1 with the SEC on May 20, 2026, with an amended filing on June 1. The roadshow kicked off June 4. Pricing is expected after market close on June 11. Trading begins June 12 on Nasdaq under the ticker SPCX.

Key SpaceX IPO facts:

• 555.6 million shares at $135 per share
• Target raise: $75 billion—would be the largest IPO in stock market history
• Valuation: $1.77 trillion — seventh-largest U.S. company on arrival, above Tesla
• Elon Musk retains 82.4% voting control post-offering
• Nasdaq rewrote its rules last month allowing the largest new listings into the Nasdaq-100 after just 15 trading days; index funds become forced buyers of SPCX within two weeks of debut
• Anthropic has also confidentially filed its IPO prospectus; OpenAI is expected to follow

A $75 billion single-week raise competes directly with institutional crypto allocations. There is no equivalent demand catalyst for Bitcoin anywhere on the near-term calendar.

Also Read: Bitcoin Hits 4-Month Low as $350 Billion IPO Wave Draws Capital Away From Crypto

Strategy Sells Bitcoin — 32 Coins. Read That Again.

Michael Saylor’s Strategy disclosed on June 1, 2026, via SEC Form 8-K, that it sold Bitcoin for the first time since December 2022. The symbolism, “Saylor never sells”, landed harder than the actual transaction. Here is the actual transaction:

32 coins against an 843,706-coin treasury is a rounding error in dollar terms. The sale funded a preferred stock dividend obligation, not a strategic retreat from Bitcoin. Strategy remains the world’s largest corporate holder, and its overall position is unchanged. What broke was the narrative, not the thesis. Saylor’s “we never sell” pledge now has an asterisk, and in crypto, narrative is pricing.

Bitcoin’s Volatility Edge Has Been Institutionalised Away

Here is the structural problem beneath the current selloff, and it is not going away.

Bitcoin’s appeal as a portfolio hedge was built on two things: high volatility (asymmetric return potential) and low correlation with traditional assets. Both have eroded sharply as institutions moved in:

• The Deribit DVOL index of implied Bitcoin options volatility is sitting near 47, close to its all-time low of ~31 struck in late May 2026. From its 2021 launch until April 2025, it barely dipped below 50
• Bitcoin had zero set correlation with the S&P 500 before 2020. For most of the past six years, the two have moved in lockstep
• That relationship has now flipped deeply negative; AI equities rally, Bitcoin lags. The diversification argument that brought institutions in is the very thing institutional participation destroyed
• Less volatility = less asymmetric upside. Less diversification = less portfolio justification. Institutional allocators are rational about both

Crypto’s Internal Market Share War

Even within the crypto ecosystem, Bitcoin is losing ground, and that ground is going to stablecoins, not to other speculative coins.

Stablecoins nearly doubled their market share in 12 months. That capital is not rotating back into Bitcoin, it is sitting in dollar-pegged assets, used for transactions and liquidity, with no speculative Bitcoin exposure at all. The ecosystem Bitcoin once dominated has structurally diversified around it.

What to Watch: Four Triggers in the Next 30 Days

• SpaceX prices June 11 and trades June 12. A $75 billion raise in one week is the single most direct capital drain on the calendar. Nasdaq-100 forced buying begins within 15 trading days of debut; index rebalancing pulls further institutional attention to SPCX
• Bitcoin technical support at $62,000 is live as of June 6. Below that, $60,000 is the next floor. A confirmed break opens the door toward $55,000 territory, per multiple technical analysts
• Galaxy Research’s 20-day trailing outflow window of $5.42 billion and 73,080 BTC is already a record. If the pace continues into the SpaceX listing week, pressure intensifies with no structural bid in sight
• Anthropic’s confidential IPO filing and OpenAI’s expected follow, a pipeline of trillion-dollar AI listings through Q3 2026, creates a sustained institutional allocation headwind for Bitcoin with no comparable crypto catalyst to offset it

Read Next: SEBI clears 5 IPOs in one week, including OYO; pipeline nears ₹10,000 crore

FAQ

Why is Bitcoin falling so sharply in June 2026?

A record 13-session ETF outflow streak has pulled $4.33 billion from spot Bitcoin funds (Galaxy Research), while institutional capital has rotated into semiconductor ETFs, with SOXX up 87–105% year-to-date and is being absorbed by the SpaceX IPO, targeting a $75 billion raise at a $1.77 trillion valuation. The loss of the sustained ETF bid removed the market’s structural price support.

Did Michael Saylor sell all of Strategy’s Bitcoin?

No. Strategy sold exactly 32 BTC for $2.5 million, 0.004% of its 843,706 BTC treasury, its first sale since December 2022. The proceeds funded preferred stock dividends on the STRC product. Strategy remains the world’s largest corporate Bitcoin holder with its position effectively unchanged.

What is Bitcoin’s market share in crypto now?

56% of total crypto market capitalisation as of June 2026, down from 63% a year ago (CoinGecko). Stablecoins have nearly doubled their share to ~13% in the same period. On daily trading volume, tether alone now exceeds the combined volume of Bitcoin and Ethereum.