Bitcoin suffered its worst monthly performance in two years during June 2026, dropping 20.48% as US spot Bitcoin ETFs recorded $4.5 billion in net outflows. On July 1, 2026, Bitcoin touched a 21-month low of $58,190, prompting Citigroup to slash its 12-month price target to $82,000 from $112,000. The bank cited negative ETF flows as a key driver of the downward pressure. Strategy, the largest corporate Bitcoin holder, sold 32 BTC for approximately $2.5 million between May 26 and May 31, marking its first sale since December 2022, while continuing to hold 843,706 BTC. The selloff coincided with a $9.7 billion drop in leveraged Bitcoin futures open interest and preceded the Federal Reserve's July 28-29, 2026 meeting, which markets view as pivotal for near-term price direction.
US Spot Bitcoin ETFs Record $4.5 Billion Net Outflows in June 2026
US spot Bitcoin ETFs experienced $4.5 billion in net outflows during June 2026, reversing the inflows that had characterized the funds since their launch in January 2024. Bitcoin's price declined 20.48% over the month, marking its worst performance since June 2022. The selloff extended into early July, with Bitcoin reaching $58,190 on July 1, 2026, a 21-month low. The asset had started 2026 above $93,000, leaving it down more than 33% year-to-date by early July. The ETF outflows represented a shift in institutional sentiment, as these funds had previously served as a primary bridge between traditional brokerage accounts and cryptocurrency exposure.
Citigroup Cuts Bitcoin 12-Month Target to $82,000
Citigroup reduced its 12-month Bitcoin price target to $82,000 from $112,000 in a July 1, 2026 research note. The bank had previously lowered its target from $143,000 on March 17, 2026. Citi stated that "ETF flows, an important driver of prices, have turned negative recently." The bank also cut its 12-month Ether target to $2,240 from $3,175 and revised its Bitcoin ETF inflow forecast to flat over the next 12 months, down from a prior expectation of $10 billion in net inflows. Citi's bear-case scenario, which assumes a recession and continued ETF outflows, places Bitcoin at $53,000 over the next year.
Strategy Sells 32 Bitcoin for $2.5 Million, First Sale Since December 2022
Strategy, formerly known as MicroStrategy, sold 32 bitcoin for approximately $2.5 million between May 26 and May 31, 2026, at an average price of $77,135 per coin. The sale was the company's first since December 2022, with proceeds used to fund distributions on its STRC perpetual preferred shares. As of May 31, 2026, Strategy held 843,706 BTC, representing more than 4% of Bitcoin's 21 million-coin maximum supply, with a cost basis of $75,699 per coin. The company's board approved a framework permitting up to $1.25 billion in bitcoin sales for reserves, dividends, interest payments, or buybacks. Citigroup noted that the new plan "strengthens liquidity and should provide more time for the company to stabilize."
Leveraged Futures Open Interest Drops $9.7 Billion as Major Holders Add 270,000 BTC
Leveraged Bitcoin futures open interest fell from approximately $31.3 billion around May 30, 2026 to roughly $21.6 billion by early June, a decline of $9.7 billion. Over a two-week period, major Bitcoin holders added more than 270,000 BTC. Federal Reserve Chair Kevin Warsh held interest rates steady on June 17, 2026 and removed expected rate cuts from guidance, a move traders linked to cryptocurrency's selloff. Markets priced approximately a 70% probability that the Fed would hold rates again at its July 28-29, 2026 meeting.
FAQ
What caused Bitcoin's 20.48% drop in June 2026?
Bitcoin declined 20.48% in June 2026 as US spot Bitcoin ETFs recorded $4.5 billion in net outflows. Citigroup cited negative ETF flows as a key driver of downward price pressure. The selloff coincided with Federal Reserve Chair Kevin Warsh holding interest rates steady on June 17, 2026 and removing expected rate cuts from guidance.
How much Bitcoin does Strategy hold after its May 2026 sale?
As of May 31, 2026, Strategy held 843,706 BTC, representing more than 4% of Bitcoin's 21 million-coin maximum supply. The company sold 32 BTC for approximately $2.5 million between May 26 and May 31, 2026, its first sale since December 2022. Strategy's cost basis is $75,699 per coin.
What is Citigroup's revised Bitcoin price target?
Citigroup cut its 12-month Bitcoin price target to $82,000 from $112,000 in a July 1, 2026 research note. The bank had previously lowered its target from $143,000 on March 17, 2026. Citi's bear-case scenario places Bitcoin at $53,000 over the next year, assuming a recession and continued ETF outflows.
