Bitcoin has experienced a significant drop, falling below $70,000 for the first time since early April. This decline, marked by a series of negative trading sessions, has raised concerns among investors, particularly following recent sales by major holders.
As of June 2, 2026, Bitcoin’s price reached approximately $69,363.65, reflecting a more than 2% decrease since midnight UTC. This downturn has been exacerbated by the recent sale of $2.5 million worth of Bitcoin by MicroStrategy, the largest publicly traded holder of the cryptocurrency. The sale has led to speculation about further sell-offs, particularly after a notable transfer of $30 million in Bitcoin to a Coinbase Prime wallet last week.
Ether, the second-largest cryptocurrency, mirrored Bitcoin’s decline, dropping around 1.7% and remaining below the crucial $2,000 threshold. In contrast, several AI-related tokens have bucked the downward trend. Notably, Humanity Protocol (H) surged by 18% on Tuesday alone, contributing to an overall increase of 278% since May 28. Similarly, Near Protocol (NEAR) also posted gains, reflecting growing investor interest in AI technologies.
The decentralized finance (DeFi) sector, however, continues to face challenges. The total value locked across all DeFi protocols has decreased to approximately $78 billion, marking the lowest level since October 2024. This decline indicates ongoing liquidity issues within the sector, which have not improved despite earlier expectations of recovery.
In the derivatives market, Bitcoin’s open interest remains stable at $19.2 billion, with speculative positioning largely unchanged. Positive funding rates across various platforms, ranging from 0% to 10% annualized, suggest a mild increase in institutional risk appetite. However, options data presents a mixed picture, with a recent spike in demand for downside protection indicating heightened caution among traders.
Despite the overall market downturn, the AI sector’s performance has been notable. The CoinDesk Computing Select Index, which tracks AI-related assets, has not fully reflected this strength, losing 1.7% recently. Chainlink, a significant component of the index, contributed to this decline with a 2.5% drop.
Additionally, the “Altcoin Season” index, which measures market momentum, has shown signs of improvement, rising from 38/100 to 45/100 since Monday, indicating a potential shift away from Bitcoin dominance in favor of altcoins.
In the context of U.S. investment trends, spot Bitcoin exchange-traded funds (ETFs) have seen a record 11 consecutive sessions of net outflows, totaling approximately $3.45 billion. This trend aligns with a broader rotation of risk capital towards AI and semiconductor stocks, highlighting changing investor priorities.
Bitcoin's price has fallen below $70,000, influenced by significant sell-offs from major holders, while AI-related tokens have shown notable gains. The DeFi sector continues to struggle, with total value locked hitting a 20-month low, reflecting ongoing liquidity challenges.