Bitcoin slides below $71,000 as Binance reserves jump 5.1%

A supply-liquidity gap on Binance and escalating US-Iran tensions pushed Bitcoin to its lowest level since April.

Bitcoin fell as much as 5 percent to $70,574 on June 1, its lowest since April 13, as Binance data revealed a widening gap between rising crypto supply and shrinking stablecoin liquidity.

"The increase in Bitcoin reserves on Binance suggests holders are moving coins closer to potential selling points, while the decline in stablecoin reserves reduces the exchange's spot buying capacity," CryptoQuant data showed.

Binance's Bitcoin reserves rose 5.1 percent to 648,600 BTC between April 25 and June 1, adding 31,600 BTC, according to CryptoQuant. Ethereum holdings climbed 10.4 percent to about 3.7 million ETH over the same period. Meanwhile, combined USDT and USDC reserves on the exchange fell $3.87 billion to $44.1 billion, reducing the pool of capital available for spot market purchases.

The simultaneous increase in available supply and decline in buying power creates a structurally less supportive environment for Bitcoin's price. With the next major support level near $68,000 and resistance at $74,000, traders are watching whether the selling pressure from exchange inflows can be absorbed by spot demand.

Geopolitical jitters deepen the selloff

The on-chain dynamics played out against a backdrop of escalating US-Iran military conflict. US forces struck Iranian military sites over the weekend, and Iran retaliated with drone and missile attacks on a US base in Kuwait. Iran subsequently withdrew from ceasefire negotiations, citing alleged Israeli violations. Brent crude briefly jumped from $91.31 to $97 a barrel, while WTI surged from $86.57 to nearly $95, as risk appetite evaporated across markets.

ETF outflows add $1.4 billion in weekly selling pressure

Institutional demand for Bitcoin also weakened. US spot Bitcoin ETFs recorded $1.4 billion in net outflows in the past week, the third consecutive week of $1 billion-plus redemptions, SoSoValue data shows. A single $1.26 billion block sale of BlackRock's IBIT accounted for the bulk of the outflows, which NYDIG attributed to a rapid exit by a large investor. The selling contributed to a broader crypto market sell-off that liquidated $627 million in leveraged positions across all digital assets, with long bets accounting for $478 million of the total. Bitcoin's market capitalization fell to $1.41 trillion, dragging the total crypto market cap to $2.52 trillion.

Strategy's 32-BTC sale rattles sentiment

Adding to the bearish narrative, Strategy — formerly MicroStrategy — sold 32 bitcoins in May, its first notable disposal in years. While the amount represents a fraction of its roughly 500,000-BTC treasury, the sale sparked criticism and raised questions about whether the company's posture is shifting. Executive Chairman Michael Saylor did not directly address the sale, instead posting on X that Strategy's objective is "to make STRC the best credit instrument in the world."

This article is for informational purposes only and does not constitute investment advice.