Trading Moment: Strategy sell-off coupled with whale dumping; Bitcoin may rebound from $65,000 due to AI-driven liquidity drain.

Daily market data review and trend analysis, produced by PANews.

Macro Market

U.S. stocks narrowly closed higher amid an AI frenzy. The S&P 500 edged up 0.13% to 7609.90, marking its longest winning streak since 1995 with nine consecutive gains. The Dow Jones Industrial Average climbed 0.45% to a new all-time high of 51307.79, while the Nasdaq Composite edged up 0.03% to 27093.90.

While the South Korean stock market was closed for a holiday , the Japanese stock market opened higher and continued to rise, with the Nikkei 225 index surging 2.7% to break through the 68,000 mark . Panasonic, Socionext, and Tokyo Electron all soared by more than 6%. This was mainly due to the Japanese cabinet approving a supplementary budget of 3.1 trillion yen to address the subsidy crisis. Finance Minister Satsuki Katayama stated that this move aimed to minimize financial risks from the Middle East and that Japan was prepared to intervene in the foreign exchange market at any time.

AI and the Stock Market

A capital frenzy is sweeping into every corner of AI infrastructure. Goldman Sachs stated that the massive capital raising in the technology sector this week is the absolute catalyst for the market, with funds pouring into the "hardware store" of data center construction. The Philadelphia Semiconductor Index surged nearly 5.9% in a single day , rebounding more than 90% from its low point in March of this year. The value of traditional companies in the AI ecosystem is being reassessed, with companies such as Dell and Caterpillar benefiting significantly.

On June 2nd, Marvell Technology became the focus of attention, surging 32.52% in a single day , marking its largest single-day gain in history. Jensen Huang appeared on stage with Marvell CEO Matthew Murphy at Computex Taipei, where Huang boldly predicted that Marvell could become "the next trillion-dollar company," further confirming Nvidia's strategic foresight in investing $2 billion in the company in March. Following closely behind, HPE also jumped 19.5% on top of its much-better-than-expected Q2 earnings report, announcing that its long-term financial goals would be achieved two years ahead of schedule.

Meanwhile, the AI funding frenzy dragged down other sectors. Alphabet announced plans to raise $80 billion through a stock sale to finance its massive AI expansion, including an investment from Berkshire Hathaway, but its stock price bucked the trend, falling 3.9%. The software and services index plunged 3.3% that day , with Microsoft and Amazon falling 4.17% and 3.9%, respectively. Goldman Sachs analysts stated that the accelerated expansion of AI is replacing traditional software, putting pressure on related sectors.

Since the CFTC approved the launch of Bitcoin perpetual futures on regulated exchanges on May 29, the stock prices of major traditional exchanges in the United States have continued to decline sharply . The Chicago Board Options Exchange (CBOE) has fallen by more than 17% this week, the CME Group by nearly 9%, and the Nasdaq by 5%, all aiming for their largest weekly declines since 2020.

Bitcoin price

Bitcoin's price action completely decoupled from the surge in tech stocks, plummeting 6.5% in a single day and briefly dipping below $66,000, hitting a new low in recent months. The immediate trigger for this flash crash was Strategy, which had long adhered to a "buy-only" strategy, unprecedentedly disclosing that it had sold 32 bitcoins (cashing out $2.5 million) to pay cash dividends on its perpetual preferred stock, STRC. This signal directly shattered the market's belief barrier.

Meanwhile, a series of negative factors followed. Mt. Gox transferred 10,300 BTC (approximately $731 million) to a new wallet again after two months. In addition, Abraxas Capital dumped 1,000 BTC during the decline, and spot ETFs saw outflows of nearly $4 billion for 12 consecutive days, all of which exacerbated market pressure.

Bitcoin's monthly chart has retreated to the key EMA50 support level ($65,906). Considering that the monthly closing price from February to May has held above this support level, most traders are viewing $65,000 as the near-term bottom for this round of market correction.

Bearish view

Caught between limited macro liquidity and the strong pull of AI, Bitcoin is facing multiple valuation corrections due to weakening institutional demand and a breakdown in key technological trends.

Bloomberg analyst Sid Verma: Bitcoin is losing a race to the top as an asset, awkwardly stuck in the middle. It's neither the best safe-haven asset (losing to gold as an inflation hedge), nor the best growth asset (losing to AI as a growth driver), and even within crypto, it's losing to stablecoins and infrastructure pegged to actual adoption rates.
Vetle Lunde, Head of Research at K33 Research, stated that Bitcoin is facing a "volatile summer" due to the high opportunity cost of holding it amid a frenzy of investment in AI stocks. Significant outflows from ETFs and the failure to recover the 200-day moving average reveal weakening institutional demand, while potential IPOs from SpaceX and Anthropic will further divert funds from the crypto market.
Bitwise Chief Investment Officer Matt Hougan: Against the backdrop of the Nasdaq's surge, cryptocurrencies are undergoing a painful transformation from momentum trading to "contrarian betting," with AI stealing all the market's attention.
Joe Weisenthal, editor-in-chief of Bloomberg Odd Lots, has expanded his assessment of a crypto winter to 12 points, stating that it is the worst winter ever. The industry has lost its "very early" narrative, institutional adoption has been completed, leading to a lack of new growth momentum, the AI boom has both siphoned off funds and attention and squeezed energy resources, putting pressure on miners, and major players like Strategy have shifted from buyers to sellers.
CryptoFrog: The drop below $70,000 triggered a significant downward move. Prices are expected to fall as low as $65,000 before seeing a short-term rebound, and if this level is breached, further declines to new bear market lows of $52,000 to $48,000 cannot be ruled out.
Super฿ro: If the previous low of $65,000 is breached, it will retrace to test the $61,000 level. Since this is a break below the ascending channel rather than a bearish flag pattern, once it approaches the low, the market will see deafening calls for a drop to $50,000 or even $30,000.
EliZ: BlackRock is frantically selling Bitcoin, which once again proves that the market is driven by liquidity rather than investor sentiment. If this selling pressure continues, it could evolve into a distribution phase designed to create panic and recoup funds.

bullish view

The current market correction has entered a support zone with high-density buying. Local technical indicators have bottomed out, and the continued accumulation of shares by contrarian institutions has laid the groundwork for a strong short-term rebound.

Santiment Intelligence: The divergence between whale selling and retail buying is widening. Once the behavior of these two groups reverses, it will be the best signal to buy the dip.
KillaXBT: I have placed a long buy order at $65,500. The market still has a 3 to 4-month bottom-finding window before it finds a true bottom. I will continue to increase my spot holdings at these levels, and when BTC reaches $65,000, I will close the last 25% of the short position opened at $77,800.
Astronomer firmly predicts that prices will rebound before reaching the $65,000 area and will hold that rebound to gradually build a bottom. For trading execution, wait for a clear rebound of at least 7.12% on the daily chart, and then calmly enter at the subsequent 0.5x Fibonacci retracement to limit the panic and pressure of blindly buying the dip.
Skew: The continued spot selling since $74,000 is more like risk hedging, but the current spot buy order depth has reached the highest level since February 5. There are huge demand clusters around $65,000 and $60,000, which could easily trigger local exhaustion and bring a rebound in the near future.
Altcoin Sherpa: Bitcoin has touched the 200-week EMA, and $65,000 is an extremely interesting area. I believe a rebound is coming soon.
Strive (Matt Cole): During last week's strategic market sell-off, he chose to increase his holdings against the trend, announcing that he bought another 2,500 Bitcoins for a total price of $185.2 million, with an average cost of $74,092 per Bitcoin. His current total holdings have reached 19,000 Bitcoins.

Key data (as of 13:00 HKT, June 3)

(Data source: Coinglass, Upbit, SoSoValue, CryptoBubbles)

Bitcoin spot ETF: -$519 million, marking the 12th consecutive day of net outflows.
Ethereum spot ETF: -$90.1481 million, marking the 16th consecutive day of net outflows.
HYPE Spot ETF: +$3.149 million
SOL Spot ETF: +$6,498,800
Fear of Greed Index: 11 (Extreme Fear)
Upbit 24-hour trading volume rankings: BTC, XRP, SLX, ETH, XLM
Sector Performance: BTC and ETH both fell by more than 6%, with only the RWA sector bucking the trend and rising.

24-hour liquidation data: A total of 278,986 people worldwide were liquidated, with a total liquidation amount of $1.856 billion, including $898 million in BTC liquidations, $482 million in ETH liquidations, and $90.7 million in SOL liquidations.

Today's Outlook

Binance will cease supporting deposits and withdrawals of certain network tokens (DODO, HFT, etc.) on June 3.
Grayscale Hyperliquid Collateralized ETF will begin trading on June 4th.
Binance will launch its Securities Lending Service (FPSL) on June 4th.
Based on the foundation: Season 3 tokens will be automatically distributed; users who have not signed the relevant terms must complete the process by June 4th.
The on-chain open-source software platform tea Protocol will launch TGE on Aerodrome on June 4th.
TSMC Annual General Meeting and Nvidia 2026 Annual General Meeting (June 4)
US initial jobless claims for the week ending May 30 (in thousands): Expected 214,000, previous 215,000 (June 4, 20:30)

The top 100 cryptocurrencies by market capitalization with the largest gains today are: Lighter up 19.3%, Ondo up 17.4%, DeXe up 17.4%, Ethena up 13.8%, and Zcash up 11.6%.