According to experts, the latest correction has been driven less by crypto-specific developments
Bitcoin came under intense selling pressure this week, briefly slipping below the $62,000 mark and triggering more than $1.5 billion worth of leveraged liquidations across the cryptocurrency market, as investors continued to pull money from spot Bitcoin exchange-traded funds (ETFs) amid broader macroeconomic uncertainty.
Bitcoin is attempting to stabilise around $64,000 after falling more than 13 per cent over the past week. The decline has erased nearly half of its value from its October 2025 all-time high, reducing its market capitalisation to about $1.27 trillion.
According to experts, the latest correction has been driven less by crypto-specific developments and more by changing investor sentiment towards risk assets.
“Bitcoin’s dip on Thursday sparked more than $1.5 billion in leveraged crypto liquidations over 24 hours, including over $800 million in Bitcoin and $386 million in Ethereum positions,” said Akshat Siddhant, Lead Quant Analyst at Mudrex.
Rising Competition
He attributed the sell-off to macroeconomic factors, including rising competition from gold and AI-linked equities, as investors reassess expectations around US Federal Reserve interest rate cuts.
The pressure has also been reflected in ETF flows. Riya Sehgal, Research Analyst at Delta Exchange, said Bitcoin ETF outflows have continued for 13 consecutive trading sessions, while professional investors reduced their spot Bitcoin ETF exposure by nearly 52,000 BTC during the first quarter.
“The overall crypto market remains under pressure as risk appetite weakens, ETF demand slows, and volatility expands across major assets,” Sehgal said.
She identified the $62,000-$61,200 range as a critical support zone for Bitcoin. A sustained break below that level could open the door for a retest of the psychologically important $60,000 mark. While technical indicators suggest oversold conditions, any recovery would require Bitcoin to reclaim $64,000 and subsequently move above $65,500, she added.
Oversold Conditions
Technical indicators currently paint a bearish picture. Siddhant noted that Bitcoin remains below its 20-day, 50-day, and 100-day moving averages, while the weekly Relative Strength Index (RSI) has dropped into the low-20s territory, levels historically associated with market bottoms. However, he cautioned that oversold conditions can persist if ETF outflows continue.
Despite the sharp decline, on-chain data suggests long-term holders have not yet shown signs of panic selling.
Vikram Subburaj, CEO of Giottus, said Bitcoin fell from around $73,580 on June 1 to nearly $62,764 on June 5, marking a decline of about 14.7 per cent in just four trading sessions. However, key blockchain indicators do not yet resemble the capitulation typically seen during major market downturns.
“The clearest sign of stress comes from institutional flows,” Subburaj said, noting that more than $4 billion has exited US spot Bitcoin ETFs since May 15, including approximately $1.4 billion in the latest week alone.
Signalling Resilience
At the same time, metrics such as Net Unrealised Profit/Loss (NUPL) and Spent Output Profit Ratio (SOPR) indicate that existing holders are largely selling near their acquisition costs rather than at steep losses, suggesting resilience among longer-term investors.
“The ETF market is signalling caution. The on-chain data is signalling resilience,” Subburaj said. “Which signal proves stronger will shape the next phase of the market.”
Market participants are now closely watching a series of key US economic events, including the jobs report and inflation data due on June 10, and the Federal Reserve’s policy meeting scheduled for June 16-17. Analysts believe these events could determine whether institutional demand returns to the cryptocurrency market after weeks of persistent ETF outflows.
For now, however, Bitcoin remains vulnerable as investors weigh macroeconomic risks, weakening ETF demand, and shifting capital flows towards traditional safe-haven assets and high-growth AI-related stocks.
Published on June 5, 2026