The cryptocurrency market experienced a severe escalation as Asian stock markets crashed, wiping out $1.5 trillion in a single session, with the KOSPI stock market declining by 8.40% during the Asian session open. This crash triggered a circuit breaker, with Samsung and SK Hynix suffering losses of 8.66% and 5.12% respectively. The market liquidated more than 104,157 traders with total liquidations reaching $628 million in 24 hours, representing the largest single-day wipeout since March 4th. The largest single liquidation order occurred on Binance's BTC valued at $12 million, as the Asian market crash spread throughout the region with Japan wiping out $385 billion, Taiwan $235 billion, and China $310 billion. Hong Kong and India lost $108 and $42 billion respectively, as the global cryptocurrency market bled alongside the stock market collapse.
The current extreme fear levels represent a significant escalation from previous readings, with the Fear & Greed Index dropping to 8 and Bitcoin's reading at 12, reflecting greater resilience than the broader market. This represents a dramatic decline from the extreme fear level of 11 recorded during the previous crash, though it remains at levels not seen since early in the year before sentiment improved to neutral at 50 during Q2. The RSI has dropped below 22, placing Bitcoin in deeply oversold territory, while the market sentiment has reached extreme pessimism with investors showing intense fear about Bitcoin's near-term prospects. Google searches related to crypto were rising from around 170 to above 320, intensifying the panic as searches surge during rallies or market crashes. This data suggests that this week there could be heavy volatility, but it may be to the downside.
The latest crash was triggered by Strategy selling 32 Bitcoin worth approximately $2.5 million for the first time since late 2022, breaking a buy-only policy that had lasted over two years. This $1.86 billion liquidation event represents the largest wipeout since February, with the sale occurring while leverage was at its highest level since October 2025. The crash pushed Bitcoin to an intraday low of $65,372 on June 3, demonstrating the severe impact of concentrated selling pressure during an already stretched market. The broader crypto market experienced significant stress, with more than $1.12 billion in crypto positions liquidated across the market, including about $949 million in long positions as Bitcoin slipped below $63,000 and tested the low-$62,000 region. According to CoinGlass data, the market wiped out a total of $5.70 billion in long positions in the past week.
The cryptocurrency market experienced widespread selling pressure beyond Bitcoin, with XRP liquidations reaching $25.64 million over the past 24 hours according to Coinglass data. Long positions accounted for $24.71 million in liquidations, representing 96.37% of total liquidations, while short positions saw only $929,583 in liquidations. More than 5,800 traders were liquidated during a period where XRP volatility exceeded 8.84%, reflecting a market heavily skewed toward bullish positioning before the decline. The largest single liquidation totaled $1.23 million, with the most intense activity occurring between 21:00 and 22:00. XRP was trading at $1.15712 at 10:09 p.m. on June 3, down 5.19% over the past 24 hours with a daily range of $1.14092 to $1.24726. Despite the sharp correction, recent developments have reinforced XRP's longer-term utility narrative, with Ripple CEO Brad Garlinghouse marking XRP's 14th anniversary and the company highlighting institutional XRP demand as CME launched 24/7 crypto futures.
The institutional selling pressure has intensified significantly, with spot Bitcoin ETF assets falling to $85 billion from peaks above $100 billion. According to Yahoo Finance, spot ETFs have posted 11 straight outflow days, draining more than $3.4 billion from the sector. This represents an 11-day outflow streak that has extended the selling pressure beyond the immediate impact of Strategy's Bitcoin sales. The ETF outflows suggest that institutional investors are reducing their Bitcoin exposure amid the current market volatility, adding to the overall selling pressure that has contributed to the cryptocurrency's decline. The broader market deleveraging event has swept through digital assets, with the $1.12 billion in total crypto liquidations highlighting the widespread nature of the current sell-off.
Despite the current extreme fear levels, analysts are projecting that Bitcoin's recovery may not occur immediately. As reported by AMBCrypto, Peter Brandt noted that the next bottom may happen in October following the extended drop to its February low. The optimistic case puts Bitcoin at roughly 20% upside from current levels, with Changelly forecasting a June average near $75,000 and a peak around $80,400. However, the record ETF outflow streak argues against a fast recovery, as at a $1.3 trillion market cap, BTC requires hundreds of billions in new demand just to revisit January highs. Wintermute's head of OTC trading, Jake Ostrovskis, indicated that what the market needs is 'some of the air coming out of the AI trade' to reignite interest in crypto and Bitcoin. The market remains focused on whether buyers can defend current levels and slow the pace of decline after several consecutive waves of weakness.
