Bitcoin Slumps to ~$61,300 as $390B Wiped Out
Bitcoin trades near $61,300 after its worst weekly performance since the 2022 FTX collapse, with BTC sliding below $60,000. The sell-off erased about $390 billion from total crypto market value and triggered a large leverage unwind.
Key figures for Bitcoin and ether: Bitcoin fell about 17.3% over the week ending June 6. Ether dropped roughly 22%, the steepest weekly declines for both assets since November 2022. Nearly $7 billion in leveraged positions were liquidated, accelerating downside through derivatives.
ETF and macro pressure dominated: Investors pulled about $5.5 billion from U.S. spot Bitcoin ETFs across 13 straight days of outflows, reducing a major demand source. Earlier, spot Bitcoin ETFs recorded a second-largest weekly outflow since launch, partially tied to Strategy’s bitcoin sale, which weighed on institutional confidence.
Macro conditions also pressured risk assets. Strong U.S. jobs data and unresolved U.S.-Iran tensions pushed traders to scale back expectations for Federal Reserve rate cuts and even price in the risk of hikes. Capital rotated toward AI equities and data-center themes, reducing near-term appetite for crypto.
Is the bottom in? Analysts are divided. Some point to potential stabilization from leverage “washout” and capitulation patterns, while others warn thin liquidity and continued ETF redemptions could keep downside risk elevated. Traders are focused on whether Bitcoin can hold the $60,000 area for an extended period, after more than half of BTC holders are in losses.
Bearish
This is bearish because the sell-off is driven by price action plus flow and leverage mechanics rather than a single technical breakdown. Bitcoin’s week drop (~17.3%) and ether’s steeper ~22% decline mirror stress conditions last seen around the 2022 FTX panic. The near $7B liquidation figure matters: forced selling in derivatives can extend drawdowns even after spot selling slows.
Flow pressure is still negative. Continuous 13-day outflows (~$5.5B) from U.S. spot Bitcoin ETFs remove a recurring buyer, making rebounds more fragile. The additional note about Strategy’s bitcoin sale reinforces the risk that institutional demand may not immediately return.
Macro adds a further headwind: strong jobs data and geopolitical uncertainty reduced rate-cut expectations, pushing markets into a more risk-off posture. When capital rotates to AI/data-center equities, crypto typically struggles to regain momentum.
Short term: traders may see choppy attempts to stabilize around $60,000, but leverage unwind and ETF redemptions can quickly re-accelerate downside. Long term: if ETF flows reverse and volatility cools, the historical “capitulation then base” pattern could eventually support a recovery; however, with more than half of BTC holders underwater, overhead supply risk can persist, keeping sentiment cautious.