Bitcoin Slides 12% to $61,500 as $4.33 Billion ETF Outflows Drain Crypto Liquidity
Updated
Updated · Investing.com · Jun 5
Bitcoin Slides 12% to $61,500 as $4.33 Billion ETF Outflows Drain Crypto Liquidity
2 articles · Updated · Investing.com · Jun 5
Summary
$61,500 marked Bitcoin’s intraweek low after a 12% seven-day drop from above $70,000, pulling total crypto market value down to about $2.18 trillion on June 4.
$4.33 billion left U.S. spot Bitcoin ETFs over 13 straight sessions through June 3, while stablecoin exchange reserves failed to rebuild and BTC netflows stayed mostly positive, signaling weak new demand and heavier spot selling.
$1.76 billion in crypto liquidations hit on June 2, with longs making up about 90%, yet BTC-denominated open interest still climbed to a record 784,000 BTC the next day, showing leverage remains elevated.
10,422 BTC moved by Mt. Gox and Strategy’s disclosed sale of 32 BTC added to supply fears as sticky 3.8% U.S. inflation, a firmer dollar and near-4.5% Treasury yields kept pressure on risk assets.
$60,000 is the next key support and $70,000 the level bulls need to reclaim, with June 10 CPI and SpaceX’s June 12 Nasdaq debut—targeting a $75 billion raise at a $1.77 trillion valuation—seen as potential liquidity drains.
With leverage at a record high, is Bitcoin set for a short squeeze or a catastrophic collapse?
Will the massive SpaceX IPO trigger the next crypto liquidity crisis?
Is the booming AI sector draining the life out of crypto markets?
Record $4.3B Bitcoin ETF Outflows Trigger 20% Price Crash: What’s Driving the 2026 Crypto Sell-Off?
Overview
In early June 2026, Bitcoin's price dropped sharply by 20% since mid-May, driven by a record $4.33 billion in outflows from U.S. spot Bitcoin ETFs over 13 consecutive sessions. This wave of withdrawals marked a significant shift in investor sentiment and capital allocation, with about 8% of all historical ETF inflows returning to the market. As a result, the total cryptocurrency market capitalization plunged to $2.18 trillion, and Bitcoin fell below key technical support levels, trading near $62,645. During this downturn, some investors moved funds into alternative investments, highlighting a broad reallocation of capital within the market.