Bitcoin, Ethereum tumble hardest weekly since FTX as $7B liquidations hit
Bitcoin and Ethereum logged their largest weekly drop since the FTX collapse. Bitcoin fell 17.3% and Ethereum slid 22%, cutting total market cap by about $390B. The selloff was linked to minor Bitcoin selling by Strategy and a rotation of capital toward the tech/AI sector. About $7B in leveraged positions was liquidated, suggesting forced selling rather than a mild correction.
Bitcoin and Ethereum price moves also reflect broader risk-off sentiment in global markets. In prediction-market pricing, the probability of Bitcoin exceeding $70,000 by June 9 is priced at roughly 1% (YES). Traders are now watching for stabilization signals such as regulatory news or large institutional buying, plus sentiment drivers like Elon Musk and Michael Saylor. Continued preference for AI stocks could keep pressure on crypto.
In the next few days, market participants will look for whether Bitcoin and Ethereum can hold support and reverse the trend or extend the downside, with liquidation flows remaining a key near-term catalyst.
Bearish
The article points to a bearish setup: Bitcoin and Ethereum experienced the steepest weekly decline since FTX, with about $7B in leveraged liquidations. Liquidation-driven drops usually carry momentum, because forced sellers add supply even if “news” is minor. The risk-off backdrop and a rotation toward AI/tech equities can further drain marginal capital from crypto.
In the short term, traders may remain cautious while liquidation aftershocks continue and prediction-market pricing (BTC > $70K by June 9 at ~1% YES) signals low near-term upside expectations. Historically, periods following large leverage flushes (e.g., post-FTX stress episodes) can show sharp rebounds, but those rebounds often require new catalysts (regulatory clarity, institutional bids) and improved liquidity.
Longer term, a stabilization phase is possible if forced selling ends and buyers step in. However, as long as capital allocation keeps favoring AI/tech and macro risk remains elevated, Bitcoin and Ethereum may struggle to sustain recoveries—keeping volatility high.