
Bitcoin has experienced a significant decline, dropping to the $62,000 intraday low as of publishing, down from approximately $73,000 on June 1st. According to market reports, this sell-off represents a broader capital rotation as traders continue to exit leveraged positions. Ethereum and XRP are following Bitcoin lower, with mid-single-digit losses across the board as correlations remain tight among major cryptocurrencies. The cryptocurrency has already erased its geopolitical risk premium, with continued ETF selling potentially triggering momentum-driven movement toward $57,000 to $58,000. More than $1.7 billion in crypto positions were liquidated as traders exited leveraged bets, with Bitcoin touching an intraday low near $59,100 before stabilizing.
The selling pressure has intensified with U.S. spot Bitcoin ETFs posting $1.72 billion in net outflows during the first week of June, marking their second-largest weekly exodus since launch. According to AMBCrypto data, the funds posted sizable net outflows throughout the week, with the exception of Thursday when they reported $3.2 million in net inflows. Notably, BlackRock's IBIT, the largest bitcoin ETF by net assets, recorded $1.38 billion worth of outflows last week, marking its largest weekly net outflow since its launch in January 2024. This extends the negative flow trend from May, when global crypto ETFs recorded $2.39 billion in net outflows against $1.79 billion of net inflows in April, as total assets under management fell to $141.1 billion from $158.7 billion a month earlier. Andri Fauzan Adziima, research lead at Bitrue Research Institute, told The Block that last week's ETF outflows were primarily driven by macroeconomic headlines, especially the stronger-than-expected U.S. jobs report that reinforced a resilient labor market and crushed near-term Fed rate-cut odds.
The selling pressure has reached concerning levels as U.S.-listed spot Bitcoin ETF assets have fallen to $77.58 billion as of June 10, matching levels last seen just after Donald Trump's November 2024 election victory. According to CoinDesk reports, these ETFs have registered net outflows of over $5 billion in four weeks, with cumulative net inflows since inception declining by nearly $9 billion to $53.77 billion - the lowest since August last year. Despite the Trump administration's favorable regulatory stance, including the Digital Asset Market Clarity Act and establishment of a strategic bitcoin reserve, investors have pulled assets from ETFs. The total net assets had crossed $90 billion within a week of Trump's election win and reached a record high of $169.54 billion in October 2025, but these post-election gains have been completely erased. Binance Research attributed the outflows to short-term pressure as inflation drives the Fed hawkish, while market analyst Ophelia Snyder cited AI and other trending financial markets as competing for investor attention. The uncomfortable truth is that $77.58 billion still represents over 1.26 million BTC held in ETF wrappers, roughly 6% of the circulating supply, locked into products that didn't exist two years ago.
Despite the broad-based sell-off, altcoin markets demonstrated relative resilience during May's outflows. According to TrackInsight data, while Bitcoin and Ether-linked instruments globally faced concentrated outflows, parts of the altcoin market led by XRP, Hyperliquid and Solana drew net inflows, creating a divergence that widened over the month. The CoinDesk 20 Index (CD20) fell only 1.11% in May after gaining 5.45% in April, while the more concentrated CoinDesk 5 Index (CD5) declined 3.73%, with Bitcoin itself falling 3.56% - a sharp reversal from April when Bitcoin (up 11.87%) and the CD5 (up 9.91%) led a broad rally. The return hierarchy also inverted, with large caps leading in April while the broad index outperformed in May, indicating that large-cap assets bore the brunt of the decline while diversified exposure offered relative shelter. This resilience has since been overwhelmed by early June, when Bitcoin had fallen to around $62,000 and major indices were down a further 15% or more, leaving no sign that May's outflows marked a bottom.
Bitcoin saw a fair amount of recovery over the weekend, rising to briefly touch $64,000 before stabilizing around $63,000. Analysts explained that this rebound was a classic case of an "oversold relief rally," following last week's sharp sell-off that pulled the cryptocurrency down 15%. The technical outlook remains bearish with resistance stacked above the mid-$60,000s and $70,000 looking increasingly distant given current ETF flow dynamics. A decisive close below $61,500 opens the door to a deeper retest of the high $50,000s, while the main level traders are watching is the $60,000 area. The rising open interest during this sell-off makes the market particularly sensitive to liquidations, with leverage building while the spot market remains weak. Adziima expects flows to stay pressured early June but stabilize or turn modestly positive mid-to-late month as fear bottoms and June seasonality helps.