Bitcoin Can't Compete With the AI Trade

U.S. stocks fell after a stronger-than-expected jobs report Friday. By 1:18 p.m. ET, the Nasdaq Composite was down nearly 3%, the S&P 500 fell 1.8%, and the Dow slipped 0.8%, with tech down 4.3% and defensives higher. May nonfarm payrolls rose 172,000 (vs. 86,000 expected) and unemployment held at 4.3%, prompting traders to price a quarter-point rate hike by end-2026.

Bitcoin is trading near $62,300 and is approaching the $60,000 support level, amid record ETF outflows, according to the article. Deribit’s Jean-David Péquignot said institutions bought BTC at $60,000–$67,000, so a break below $60,000 could trigger selling and more liquidations. The report cites $1.2 billion in $60,000 put open interest and “short gamma,” which may mechanically intensify declines.

Bitcoin fell 21% in 10 days, retesting $61,000, as Strategy (MSTR) paused some buying after using $1.38B cash from recent equity raises to repurchase convertible debt. The company’s cash fell to $900M, covering ~6 months of dividends. Traders cite tighter liquidity and STRC below $100, but Strategy’s 11% net leverage is described as conservative, with no contractual forced liquidation.

Grayscale said Strategy’s leveraged Bitcoin model is under pressure, citing Zach Pandl’s warning that Strategy may have limited ability to accumulate BTC at current share prices for STRC and MSTR. Strategy sold 32 BTC on Monday and $128 million of shares; its stock fell 12.8% to $126. Grayscale warned STRC’s discount to par could raise dividend needs and trigger more BTC sales.

Bitcoin fell about 10% in early June, from ~$74,000 to ~$65,400, as investors focused on Strategy’s first BTC sale since 2022. In an 8-K, Strategy said it sold 32 BTC (~$2.5M) the prior week, reversing its “never sell” stance. The sale coincided with Strategy retiring $1.5B of 2029 convertibles using $1.38B cash and buying 24,869 BTC, while STRC and MSTR shares declined.

Crypto market cap fell from $2.53T last Wednesday to $2.25T, with Bitcoin testing ~$61,500 before rebounding to ~$63K. The article cites Strategy’s first BTC sale in nearly four years (32 BTC sold at avg $77,135), U.S. spot Bitcoin ETF outflows (13 straight days; $396.6M on June 3), $1.76B leveraged liquidations in 24 hours, and Iran-related tensions.