Key Takeaways
- Bitcoin price dropped to a two-month low below $70,000 as investors increasingly favor equities.
- U.S.-listed Bitcoin ETFs recorded approximately $483.8 million in net outflows on June 1.
- While sentiment has turned bearish, Santiment believes growing “stock market FOMO” and “crypto FUD” could suggest a rebound.
Bitcoin fell to a two-month low as persistent selling pressure weighed on sentiment, prompting analysts to worry that investors are increasingly shifting capital from BTC to stocks.
It comes as Bitcoin’s price fell below $70,000, down 3.8% over the previous 24 hours, according to CoinMarketCap data.
However, the market intelligence platform Santiment noted that mainstream influencers discussing the dominance of stocks over crypto could signal an incoming price rebound.
Santiment Reports Investors Increasingly Favor Stocks Over Bitcoin
Market intelligence platform Santiment said growing investor enthusiasm for equities has become hard for crypto traders to ignore.
Santiment highlighted a widening performance gap between equities and alternative assets, noting that from May 6 through June 1, the S&P 500 gained roughly 4%, while Bitcoin fell 13% and gold declined 5%.
“The gap between traditional equities and crypto has become increasingly difficult for traders to ignore,” Santiment said in a June 1 post on X.
According to the firm, strong gains in US equities, supported by investor optimism surrounding corporate earnings, have encouraged traders to seek exposure to stocks rather than crypto.
“When traders see equities consistently generating better returns with lower volatility, capital often rotates away from crypto and into stock markets,” Santiment said.
The trend comes despite several long-term bullish narratives for Bitcoin, including institutional adoption through ETFs and growing participation from traditional financial firms.
Instead, investors appear to be prioritizing sectors such as AI and large-cap technology stocks, which have delivered stronger returns throughout 2026.
Santiment Sees a Potential Contrarian Signal Emerging
Despite acknowledging the current shift toward equities, Santiment cautioned that investor sentiment may be becoming excessively one-sided.
The firm argued that widespread discussion of crypto’s stock market dominance and underperformance could signal growing fear, potentially creating conditions for a future reversal.
“Now that you’re seeing mainstream influencers discussing stock dominance over crypto, this is a good sign that the crowd is leaning too far into the equity FOMO and crypto FUD,” Santiment said.
The analytics firm noted that markets often move against expectations and noted that the current preference for equities will not persist indefinitely.
Santiment’s May report also emphasized that attention has gradually returned to crypto.
Discussions surrounding Bitcoin increased roughly 24% in May compared with April, while Ethereum-related conversations rose approximately 54%.
Bitcoin Price Struggles as ETF Outflows Continue
Bitcoin’s latest price decline has been driven primarily by sustained institutional selling through spot Bitcoin ETFs.
US spot Bitcoin ETFs recorded net outflows of approximately $483.8 million on June 1, extending a streak of 11 consecutive trading days of withdrawals.
Total net outflows over the period reached $3.45 billion, according to SoSoValue data.
The withdrawals have undermined one of Bitcoin’s strongest sources of institutional demand in recent years and contributed to mounting selling pressure across the market.
Additional weakness came from derivatives markets, where more than $385 million worth of Bitcoin positions were liquidated over the past 24 hours.
Long positions accounted for roughly 96% of those liquidations, accelerating the decline, according to CoinMarketCap.
Michael Saylor’s sale of 32 Bitcoin for approximately $2.5 million between May 26 and May 31, 2026, has also contributed to a decrease in sentiment across the industry.
Daniel Reis-Faria, CEO of ZeroStack, told CCN that the sale was drawing attention “because investors closely watch any activity from one of the market’s largest corporate holders.”
“But it’s important to view that transaction in the context of the company’s broader strategy,” he added.
Technical indicators have also deteriorated.
Bitcoin has fallen below its 50-day moving average and breached a key Fibonacci retracement level near $73,200, while the relative strength index has dropped into oversold territory.
CoinMarketCap analysis said Bitcoin must reclaim the $72,500 level to stabilize near-term sentiment and invalidate the current downtrend.
Failure to hold support near $70,600 could open the door for a move toward the $68,000 region.
“Right now, the market is weighing that conviction against near-term uncertainty, which is why headlines around ETF outflows, price declines, and corporate sales are drawing so much attention,” Reis-Faria said.
Kurt Robson is a London-based reporter at CCN, specialising in the fast-moving worlds of crypto and emerging technology. He began his career covering local news in Cornwall after graduating from Falmouth University with First Class Honours in Journalism. There, he cut his teeth on everything from council meetings to missing swans.
He quickly rose through the ranks to become a frontline journalist at several of the UK’s leading national newspapers. Over the years, he has interviewed musicians and celebrities, reported from courtrooms and crime scenes, and secured multiple front-page exclusives.
Following the upheaval of the COVID-19 pandemic, Kurt shifted his focus to technology journalism—just ahead of the AI boom. With a natural curiosity and a trained eye for emerging trends, he has found a new rhythm in reporting on innovation.
At CCN, Kurt's work focuses on the cutting edge of crypto, blockchain, AI, and the evolving digital world. Drawing on his background in people-first reporting and his deep interest in disruptive tech, Kurt delivers stories that are insightful, entertaining, and human-centric.
