BTC Breaks 63K as Liquidations Hit $1.12B; ETF Outflows Drive Risk-Off
Bitcoin (BTC) fell for a second straight day, breaking below 63,000 and printing a near 14-day low around $63,314. Ethereum (ETH) dropped to about $1,798. Over the last 24 hours, total crypto liquidations hit about $1.12B across 166,334 traders, with long positions dominating (~85%, ~$949M).
The BTC sell-off was driven by three main catalysts: (1) US spot Bitcoin ETF outflows of $519M on June 2, with BlackRock and Fidelity among the sellers; (2) Strategy (Michael Saylor) reportedly sold 32 BTC for the first time in about four years, adding negative sentiment; and (3) weaker rate-cut expectations as inflation stayed sticky, pushing US yields higher and weighing on risk assets. Geopolitical tension (US-Iran) also contributed to the risk-off tone.
Altcoins followed the de-risking move: SOL slipped to around $70.9 and XRP to about $1.196. The Fear & Greed Index stayed at 12 (extreme fear), while equities closed lower, reinforcing deleveraging.
For traders, watch BTC around the 63,000 psychological level. Also monitor whether ETF flows stabilize and whether US 10Y yields and geopolitical headlines cool. If BTC support fails, downside pressure is likely to increase further.
Bearish
BTC’s continued breakdown and heavy liquidation skew toward longs suggests forced deleveraging rather than orderly pullback. Large spot Bitcoin ETF outflows weaken marginal demand, while Strategy selling (symbolic BTC supply signal) can pressure sentiment. At the same time, sticky inflation and higher US yields reduce risk appetite, making recoveries harder in the near term. Even with equities not directly driving crypto (earlier notes showed divergence), the latest update shows broad risk-off conditions (extreme fear, equities lower), increasing the probability of further downside if BTC fails to hold the 63,000 area. Longer-term stabilization would likely require ETF flow improvement and a clearer shift toward easier-rate expectations.