Tether burns $1.2B as BlackRock cuts $2.1B; Bitcoin unclear

On May 31, Bitcoin traded near $73,840, moving in a narrow band between about $73,412 and $74,110 as large stablecoin outflows and institutional sales drew attention. Tether’s market capitalization fell by roughly $1.2 billion in 24 hours, and BlackRock’s IBIT vehicle reduced its bitcoin holdings by about $2.1 billion over the previous ten days.

YouTuber Crypto Rover posted that Tether’s market cap drop reflected token burns over the 24-hour period and noted that stablecoin dominance, measured as the combined share of USDT and USDC, had moved above 10.5 percent. Crypto Rover also pointed to a similar Tether outflow that preceded Bitcoin’s decline from roughly $90,000 to $60,000 in February. A prediction market priced an 85 percent probability that Bitcoin would touch $70,000 before reaching $90,000.

Institutional flows were mixed. Data showed BlackRock’s IBIT reducing its bitcoin exposure by about $2.1 billion over ten days, while some corporate buyers and other funds increased positions, including a firm that bought roughly 1,100 BTC in a single session.

On the one-hour chart, price action compressed after a pullback from around $78,000. Bitcoin formed a series of higher lows since testing about $73,100, while repeated rejections near $74,100–$74,200 kept the market in a tight range. Traders monitored the $73,600–$73,700 band as immediate support and $73,100 as a critical floor. An hourly close above $74,200 was seen as opening a path to $75,000 and $76,000. A close below $73,500 would flip the near-term structure toward lower targets at $73,100 and $72,400.

On the four-hour chart, Bitcoin consolidated between roughly $73,000 and $74,500 after a selloff into the $72,400 area. Volume decreased during the sideways period. A sustained break above $74,200–$74,500 was required for a higher-probability bullish entry, while a break and hold below $72,400 risked a move toward $71,000 to $70,000.

The daily chart showed lower highs and lower lows since a peak near $82,800. Volume picked up during the earlier selloff. An aggregate moving-average panel registered a bearish lean, with most short- and medium-term moving averages positioned above the market price. The 14-period relative strength index was around 37, the Stochastic RSI flashed an oversold reading near 10, the commodity channel index was negative, and momentum indicators including MACD were also pointing lower. The volume-weighted moving average sat near $77,393.

Some market participants noted that reclaiming the $76,000–$77,000 area on a daily close would be required to shift the broader technical picture toward higher levels, while failure to hold the low $72,000s would increase the chance of a test of $70,000. Traders continued to monitor stablecoin flows and institutional activity for direction.