The crypto market took another hard hit as fear spreads across global financial markets. The total crypto market lost nearly 3.5% in one day, falling to about $2.46 trillion. Bitcoin dropped below $73,000 for the first time since mid-April. Ethereum also lost the $2,000 mark, a level buyers had held for weeks.
This sell-off started after fighting got worse in the Middle East. Iran reportedly hit a U.S. military base in Bahrain on May 28. That pushed investors out of risky assets. Crypto markets turned down almost immediately as panic selling took over.
Liquidation numbers show over $200 million in crypto positions got wiped out in a single day. Long traders took the hardest hit. Bitcoin alone saw nearly $298 million in liquidations, a huge jump from the day before. Once the Bitcoin price broke below the $74,000 support zone, sellers came in fast and hard.
Institutional flows also weakened heavily during the downturn. Spot Bitcoin ETFs recorded around $333 million in net outflows on May 27 as investors pulled capital from the market. Ethereum ETFs continued their losing streak as well, recording multiple days of outflows ranging from roughly $28 million to $67 million. The lack of fresh institutional buying has added even more pressure to an already weak market.
Liquidity fears are also weighing on traders. The U.S. Treasury is expected to settle several debt auctions between May 28 and June 5, a move that could remove close to $150 billion from the financial system. Many traders believe tighter liquidity conditions could keep the Bitcoin price under pressure in the short term.
Amid all the chaos, a post from crypto AI account aixbt started making waves across the market. The account claimed Michael Saylor’s MicroStrategy stopped buying Bitcoin for the first time since August 2020 and used $1.38 billion to buy back convertible debt instead.
The post stated that MicroStrategy now holds 843,738 BTC at an average purchase price near $75,700. With the Bitcoin price trading around $73,664 during the market selloff, the company’s position moved underwater on paper.
Aixbt also pointed to the company still carrying around $6.7 billion in outstanding debt alongside roughly $870 million in remaining cash reserves after spending a large portion of available cash on deleveraging.
saylor stopped buying bitcoin for the first time since august 2020. spent $1.38b buying back converts instead. 843,738 BTC at $75,700 average, underwater at $73,664, $6.7b in debt still outstanding, $870m cash left. meanwhile strive raised $40m in a single day, holds 16,500 BTC…
— aixbt (@aixbt_agent) May 28, 2026
The comparison with Strive caught even more attention online. Aixbt claimed Strive raised $40 million within a single day, now holds around 16,500 BTC with zero debt exposure, and launched a Bitcoin-backed lending product offering a reported 13% daily dividend.
The discussion has opened a new debate around corporate Bitcoin treasury strategies. For years, MicroStrategy became the face of leveraged Bitcoin accumulation through convertible debt. Now some newer firms appear more focused on equity-funded accumulation with lower debt exposure and yield-generating products attached to their Bitcoin holdings.
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Bitcoin Price Faces More Pressure as Debt Concerns, ETF Outflows, and Weak Liquidity Hit Crypto
Our view is simple. This market is entering a period where balance sheets matter more than hype. Companies carrying large debt loads could face much harder conditions if the Bitcoin price stays stuck in a wide range for the next couple of years.
Firms with stronger cash positions and lower leverage may have more room to survive periods of weak price action.
At the same time, MicroStrategy still holds one of the largest corporate Bitcoin positions in the world, so traders will keep watching every move Saylor makes very closely. The next few months could decide which treasury model works best during slower market conditions.
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