Bitcoin Falls 20% in June as ETF Outflows Hit $4.5B

Bitcoin dropped 20.48% in June and touched a 21-month low of $58,190 on July 1. US spot Bitcoin ETFs registered $4.5 billion in net outflows in June, the largest monthly outflow since those funds launched.

The ETFs began trading in January 2024 and had attracted inflows earlier in 2026. In June they recorded net redemptions after months of positive flows.

Bitcoin started 2026 above $93,000 and was more than 33% below that level by early July.

In a July 1 research note, Citigroup lowered its 12-month Bitcoin price target to $82,000 from $112,000 and cut its 12-month Ether target to $2,240 from $3,175. The bank said it now expects net Bitcoin ETF inflows over the next 12 months to be flat, down from a prior projection of $10 billion, and outlined a $53,000 bear-case scenario. Citigroup wrote, “ETF flows, an important driver of prices, have turned negative recently.”

Strategy, the company formerly known as MicroStrategy, sold 32 Bitcoin between May 26 and May 31 for about $2.5 million at an average price near $77,135. The company reported holding 843,706 BTC as of May 31, with a reported cost basis around $75,699 per coin. Strategy said the sale funded distributions on its STRC perpetual preferred shares and that its board approved a framework allowing up to $1.25 billion in future Bitcoin sales for reserves, dividends, interest or buybacks. Citigroup commented that the plan “strengthens liquidity and should provide more time for the company to stabilize.”

Leveraged Bitcoin futures open interest fell from about $31.3 billion at the end of May to roughly $21.6 billion in early June, a decline of about $9.7 billion. Over a two-week stretch in late May and early June, large holders added more than 270,000 BTC.

The Federal Reserve held interest rates steady on June 17 and removed near-term rate cuts from its guidance. Ahead of the Fed’s July 28-29 meeting, markets priced roughly a 70% chance that policymakers would hold rates again.

Market participants cited ETF flows, adjustments in leveraged positions, accumulation by large holders and the Fed’s policy path as the main factors affecting Bitcoin’s near-term outlook.