Bitcoin and Crypto Market Report - Week 23 #180
Bitcoin just experienced its worst week of 2026.
-17% in seven days. $1.7B in ETF outflows in a single week. Every on-chain metric I track is moving in the same direction simultaneously. Welcome to the 180th issue of On-chain Insights by IT Tech.
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Table of contents:
🆓 Free content (for all free subscribers):
New Telegram community for Active Traders
Top 10 Crypto & Macroeconomic News
General Market Update
Small Whales Moved Futures While Spot Stayed Passive
Crypto Market Sector Performance
🔐 Premium Insights (exclusive for paid subscribers):
Deep-dive on-chain market structure analysis ⤵️
Key Cost Basis Levels for Bitcoin
Bitcoin Holders Lost $1.3B On-Chain This Week
LTH/STH SOPR Ratio Drops to 0.7 for the First Time This Bear Phase
The Demand Gap That Built This Bear Phase Just Reached Its Widest Point
U.S. Spot Demand: Coinbase Premium
BTC ETF Outflows Hit -$1.7B This Week
Stablecoin Supply Contracts for the First Time in 2026
Issue Summary & Outlook
1. New Telegram Community for Active Traders.
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*Disclaimer: Educational content only. Not investment advice. Past performance does not guarantee future results.
2. Top 10 Market News: Crypto, Stocks & Macro (June 1-7, 2026).
The week opened with equity records on AI momentum, then pivoted sharply as Bitcoin’s -17% decline, record ETF outflows, and unresolved geopolitical pressures dominated the macro backdrop.
Bitcoin Drops -17%, Briefly Touching $59K: Driven by Mt. Gox wallet movements (~10K BTC), MicroStrategy’s token sale, and over $1B in liquidations, BTC printed the sharpest weekly decline of the bear phase. Sentiment reached extreme fear for the first time since February 2026.
ETF Outflows Hit Single-Day Record (~$10B on June 3): IBIT led with -$7.2B, followed by FBTC (-$1.55B) and GBTC (-$1.26B). Spot volume across the top three exchanges surged to $5.4B to reprice the shock.
CFTC Approves First Regulated Bitcoin Perpetual Futures: Alongside CME launching 24/7 XRP futures, the CFTC perpetual approval marks a significant structural expansion for regulated U.S. derivatives.
S&P 500 and Nasdaq Reach Fresh Records: NVIDIA’s new AI chip pushed equities to multi-week highs early in the week before late-session profit-taking emerged.
Record AI Capital Commitments: Anthropic’s IPO filing and Alphabet’s $80B AI raise reinforce the AI infrastructure buildout as the dominant equity theme of 2026.
SpaceX IPO Preparations: Reports of IPO groundwork contributed to early-week risk-on appetite across traditional risk assets.
US-Iran Tensions Drive Oil Volatility: Energy price risk in the Strait of Hormuz remains the primary transmission mechanism driving inflation expectations into Week 24.
Sticky CPI/PCE Delay Rate Cuts: Solid ISM services and job openings data, paired with declining real incomes, reinforce the case for a delayed Fed pivot.
Q1 2026 GDP Revised to 1.6%: IMF and OECD projections hold global growth near 3.2-3.3%, with AI investment acting as the primary macro offset to trade drags.
Altcoin Divergence Remains Narrow: Isolated resilience in select AI and RWA assets (e.g., Hyperliquid, Solana-adjacent projects) reflects localized bidding rather than a broad sector rotation.
💬 Comment:
Equities remain near all-time highs while crypto absorbed its worst weekly decline of the bear phase. This divergence highlights that while macro sets the background, on-chain flows and cost-basis structures dictate crypto’s immediate direction. The near-term demand deficit remains the primary headwind.
3. General Market Update.
Bitcoin broke below the 2021 cycle high zone, resetting market structure to levels last seen before the final phase of the 2024-2025 bull market. More than $330B was erased from the total crypto market cap in a single week.
Current state:
BTC (1W, candle still open): H $74,092 | Current $62,464 | WoW -15.22% | ATH $126,199 (-50.5%)
BTC.D (1W): 58.84% | WoW -0.94pp
TOTAL (1W): $2.13T | WoW -13.71% | 50.1% below ATH
OTHERS (1W): $174.16B | WoW -11.75% | 64.6% below ATH
BTC resistance: $65,000 | $69,000-$70,000 | $74,092
BTC support: $59,131 | $58,000-$60,000 | $50,000
TOTAL support: $2.02T | $1.8T-$2.0T
OTHERS support: $161B | $80B-$100B
💬 Comment:
The largest weekly decline of the bear phase has pushed BTC below a support zone that held for months. BTC dominance also declined during the selloff, confirming broad market liquidation rather than capital rotating into altcoins. With TOTAL retracing 50% from the cycle peak and OTHERS approaching levels associated with prior bear market lows, market structure remains firmly bearish.
Crypto Heatmap TOP 300 Coins (7D).
Virtually the entire top 300 printed red this week - broad-based losses with no sector leadership and no capital rotation visible anywhere in the market.
Current state:
BTC: -15.1% ($62,636) | ETH: -19.24% ($1,631) - ETH underperforming BTC on the weekly, confirming risk-off deleveraging rather than rotation
Majors: BNB -17.43%, SOL -21.37%, XRP -14.91%, ADA -14.91%, DOGE -15.84% - uniform broad-market decline, no large-cap divergence
Isolated green: LAB +61.2%, H +93.23%, WLD +28.52%, KOGE +88.33%, BTW +330.84% - exclusively low-cap outliers with no sector clustering or follow-through significance
Infrastructure / DeFi / AI: uniformly red across the board - no sector held up.
Context:
A heatmap this uniformly red - with ETH underperforming BTC and every major sector printing losses simultaneously - is characteristic of forced deleveraging events rather than orderly bear market selling. In prior bear phase weeks where sector rotation was beginning, at least one cluster (DeFi, AI, or RWA) would show relative strength. This week produced none. The isolated green names are low-cap anomalies, not a rotation indicator.
💬 Comment:
The 7D heatmap confirms what the price charts show: this was a liquidation event, not a correction with internal divergence. Until at least two major sectors print positive on a weekly close simultaneously, the breadth reading remains consistent with bear phase continuation, not bottoming behavior.
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4. 🔐 Forced Exits: Small Whales Move Futures While Spot Stays Passive.
The week’s decline was driven primarily by derivatives activity rather than large-scale spot distribution. Spot markets remained relatively passive while leveraged traders absorbed the majority of the pressure.
Current state:
Bitcoin ($62,646 | 7D -15.16%):
Spot Retail Activity: Neutral
Spot Average Order Size: Normal
Spot Volume Bubble Map: Cooling
Spot Taker CVD (90D): Neutral
Futures Retail Activity: Neutral
Futures Average Order Size: Small Whale Orders
Futures Volume Bubble Map: Neutral
Futures Taker CVD (90D): Neutral
Ethereum ($1,631 | 7D -19.21%):
Spot Retail Activity: Neutral
Spot Average Order Size: Normal
Spot Volume Bubble Map: Cooling
Spot Taker CVD (90D): Taker Buy Dominant
Futures Retail Activity: Neutral
Futures Average Order Size: Normal
Futures Volume Bubble Map: Cooling
Futures Taker CVD (90D): Neutral
💬 Comment:
Large spot holders remained largely inactive throughout the decline. Instead, selling pressure was concentrated in derivatives markets, where smaller whale cohorts amplified downside volatility through leveraged positioning. ETH presents an interesting divergence, with spot buyers actively absorbing supply despite a nearly 20% weekly decline. For now, however, spot demand remains too weak to offset futures-driven selling.
5. 🔐 Crypto Market Sector Performance.
Sector Performance – Weighted Average, last 7 days
(Change in fully diluted market cap by sector, weighted by token size)
Every tracked sector closed negative this week, marking the first complete sector wipeout of the current bear phase. Market breadth remains one of the weakest readings of 2026.
Current state:
Positive sectors: 0 of 24
Negative sectors: 24 of 24
Worst performers:
Social: -25.5%
Perp DEX: -23.7%
Privacy Coin: -22.9%
Gen 1 Smart Contract: -21.4%
Store of Value: -21.0%
Least negative:
Utilities & Services: -5.2%
RWA: -5.9%
AI: -6.5%
NFT Applications: -11.2%
DeFi: -14.3%
💬 Comment:
A 0/24 breadth reading confirms broad risk reduction across the entire market rather than selective sector rotation. While AI and RWA outperformed on a relative basis, the key takeaway is that no major sector attracted meaningful capital during the selloff. Until multiple sectors begin improving simultaneously, sector breadth continues to support a bearish market environment.
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This week’s report covers the flows, positioning, ETF activity, and cost basis levels behind Bitcoin’s sharpest decline of 2026.
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6. 🔐 Key Cost Basis Levels for Bitcoin.
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