Bitcoin has broken below the critical 60,000 level for the first time since October 2024, falling to an intraday low of ₹4.8 lakh on June 5, 2026. The decline was triggered by a surprisingly strong US jobs report that pushed markets to fully price a Federal Reserve rate hike this year. According to CoinDesk, Bitcoin dropped about 10% to the ₹4.8 lakh area, sliding under ₹5 lakh with almost no fight, while Ethereum was hit harder, dropping about 10% to the ₹1.59 lakh to ₹1.60 lakh area. The total BTC market cap has fallen to roughly ₹1.21 trillion, with Bitcoin dominance sitting near 58% as altcoins continue to outperform. This represents crypto's worst week since July 2024, with Bitcoin down close to 20% since mid-May and more than 50% below its October 2025 all-time high near ₹1.26 lakh.
The biggest mechanical driver of this drawdown has been a record ₹4.4 billion ETF outflow streak from May 15 through June 3, shedding roughly 59,351 BTC according to Galaxy Research and SoSoValue. However, the selling has intensified dramatically with Bitcoin ETF outflows crossing $10 billion, significantly weakening one of crypto's strongest sources of institutional demand. Major ETF issuers including BlackRock, Fidelity, and Grayscale all recorded heavy outflows, forcing markets to reprice expectations around institutional buying. The corporate Bitcoin story has flipped from a tailwind into a question mark, with Strategy holding roughly 843,000 BTC at an average cost basis near ₹75,500, making the entire position more than ₹15,000 per coin underwater - the deepest unrealized loss of the cycle. The panic selling has been further amplified by more than $1.85 billion in liquidations, including roughly $614 million in Bitcoin liquidations and nearly $500 million in Ethereum, with open interest declining by more than 6% as traders rushed to cut risk.
The latest selloff has pushed the Crypto Fear & Greed Index to 13, placing markets in Extreme Fear territory - historically a zone linked with market bottoms and sharp reversals. According to CoinDesk, daily and weekly RSI readings are now deeply oversold, levels that have historically preceded relief bounces because selling pressure eventually exhausts itself. The Fear and Greed Index is parked in extreme fear, with sentiment hitting peak bearishness right at the lows. Historically, similar readings often appeared near local bottoms, particularly after sharp leverage wipes and aggressive panic selling, suggesting that most sellers may have already reacted. Recovery becomes more likely once fear stabilizes and confidence slowly starts returning, with Bitcoin usually recovering first while altcoins follow later. The Altcoin Season Index has jumped nearly 70% over the same period, indicating selective capital rotation into specific altcoins rather than broad-based selling. This marks the third extreme-fear event this cycle, following similar readings in April 2025 and February 2026, each of which coincided with major market lows and subsequent recovery periods.
From a technical perspective, Bitcoin is down nearly 20% while the S&P 500 dropped 2.6%, primarily driven by weakness across equities. According to CoinDesk, Bitcoin first triggered the breakdown after repeatedly failing to reclaim the $78,000–$80,000 resistance zone, eventually losing the ascending trendline support that had held price structure together since March. The $58,000–$60,000 zone is currently acting as the market's most important support level after BTC lost key trendline structure. Downside targets include ₹58,000 and ₹55,000 if Bitcoin loses ₹60,000 on a daily close, while upside recovery requires reclaiming ₹62,000, then ₹64,000, and only a daily close back above ₹65,000 would start to repair the broken structure. The one counterweight is momentum, with oversold conditions providing room for a bounce toward ₹64,000 to ₹65,000 into the June 16-17 FOMC meeting, but nothing about this setup turns genuinely bullish until BTC can reclaim ₹68,000.
The macro environment has turned decidedly hawkish, with traders in the Treasury market fully pricing a Fed rate hike by the December meeting, with roughly 60% chance the move comes as early as October. The 2-year yield jumped as much as 11 basis points to 4.15%, the highest reading this year, while the 10-year yield rose about 6 basis points to 4.53% and the 30-year pushed back above 5%. The US Dollar Index climbed toward 100, a level last seen on April 7. The strong jobs report showed the US economy added 172,000 jobs in May, more than double the roughly 95,000 expected, with the unemployment rate holding steady at a low 4.3%. This macro cocktail of strong labor market, oil-driven inflation, and rising yields is pulling liquidity out of Bitcoin, with the rate cut-driven liquidity story that underpinned the crypto bull case for much of the past year now almost fully drained out of the tape.
