Bulls Rout. Bitcoin Slumps Over 16% in a Week to Hit Lows, Crypto Market Faces Chain Liquidations
Bitcoin has dropped over 3.5% in 24 hours, falling below $62,000 to $61,100, a 26% decline since early May. This sell-off has led to nearly $4 billion in crypto long liquidations and impacted crypto-related equities like Coinbase and MicroStrategy. Capital is shifting towards AI stocks and IPOs, diminishing crypto market risk appetite. Institutional investors are reducing crypto exposure, with hedge funds cutting Bitcoin ETF holdings significantly. Near-term sentiment is expected to remain weak, with $61,500 a critical support level. Upcoming non-farm payrolls data could influence the dollar and potentially trigger a short-term crypto rebound if unemployment rises.
TradingKey - During the Asian trading session on June 5, Bitcoin continued its downward slide, falling more than 3.5% within 24 hours. It briefly broke through $62,000 intraday, hitting a low of $61,100, marking a cumulative three-week decline of approximately 26% since the recent high of $82,500 on May 6. As of press time, Bitcoin was trading at $62,688, with a cumulative drop of over 16% this week, heading toward its largest weekly decline since November 2022.
The sell-off has triggered large-scale forced liquidations. Since the beginning of this week, nearly $4 billion in bullish crypto bets have been liquidated, with Bitcoin suffering the heaviest losses. In the past 24 hours, cryptocurrency exchanges recorded $594 million in long liquidations, with over 250,000 investors forced to close their positions.
Heightened market panic has spilled over to related U.S.-listed stocks. At the close of overnight trading, during the two trading sessions of June 2 and 3 ET, Coinbase ( COIN.US) fell more than 10% in total, while Strategy ( MSTR.US) fell more than 15% in total over the two trading days.
Meanwhile, capital is flowing into AI-concept stocks and major U.S. IPOs on a large scale, further diverting risk appetite from the crypto market.
Citi analysts noted that the divergence between Bitcoin and record-breaking tech stocks has widened further. The latest CFTC data shows that institutions are systematically reducing their exposure to crypto assets, with hedge funds trimming their holdings of U.S. spot Bitcoin ETFs by 39% in the first quarter. Market sentiment is expected to remain subdued in the short term.
Technically, the $62,000 to $61,500 range is a key support area. If it breaks decisively, the next target will be the $60,000 psychological level.
With the non-farm payrolls report due soon, if the unemployment rate rises more than expected, a weakening dollar could create conditions for a short-term rebound; conversely, if employment data remains resilient, it will reinforce the pricing logic of front-loaded rate hike risks, and the crypto market's stress test will continue.
This content was translated using AI and reviewed for clarity. It is for informational purposes only.
Recommended Articles
Comments (0)
Click the $ button, enter the symbol, and select to link a stock, ETF, or other ticker.