Summertime sadness?
Bitcoin posted its worst one-week return since February 10, while three-week ETF flows fell to their second-deepest level on record. Meanwhile, funding rates have surged to their highest levels since mid-November 2025 with OI hovering near yearly highs.
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Summertime sadness?Bitcoin sold off hard this week, dropping below $70,000 for its first double-digit weekly loss since February 10. ETFs sold aggressively, CME exposure fell to multi-year lows, and perp open interest climbed alongside rising funding rates. We read the latent selling pressure in those leveraged longs as a warning of possible deeper lows and advise caution, despite our earlier call that $60k was the bottom. Separately, Strategy's sale of 32 BTC, only its second ever, is mostly noise given its tiny size and the company's standing aim to keep growing its stack.Longer term, we still see BTC as deeply undervalued versus equities and attractively priced. But persistent relative weakness and heavy ETF outflows suggest much of the market views the opportunity cost of holding BTC as too high while anything AI-related soars. With outside capital reluctant to enter and existing holders trimming exposure, we may be in for a choppy summer
