Bitcoin's price fell below $62,000, triggering significant liquidations and affecting altcoin values amid ongoing ETF outflows.
On June 4, Bitcoin's price fell to $61,351, marking a significant downturn that triggered a wave of liquidations in long positions across the market.
Currently, Bitcoin is trading at $63,581, but the drop has negatively impacted altcoins as well. Ethereum saw its value dip below $1,800, while Solana fell to $69, and XRP was priced at $1.17.
In the last 24 hours, forced liquidations reached approximately $1.63 billion, predominantly from long positions totaling $1.38 billion. Analyst Riya Segal from Delta Exchange attributed this sell-off to multiple factors including consistent outflows from spot Bitcoin ETFs, geopolitical tensions, and the breach of critical support levels that instigated further liquidations.
Experts from CoinDesk highlighted that the $65,000 level is a crucial technical point. A sustained price drop below this threshold could lead to testing the $60,000 mark. Additionally, the Deribit options exchange is witnessing increased interest in put options with strike prices of $50,000, $55,000, and $65,000, set to expire at the end of June.
Market pressure is amplified by trends in institutional demand. U.S. spot Bitcoin ETFs experienced a net outflow of $396.6 million on June 3, continuing a negative trend that has persisted for 13 consecutive sessions since May 15. Giottus CEO Vikram Subburaj noted that the lack of capital inflow has removed the support that previously aided Bitcoin's growth earlier this year.
It's important to mention that Bitcoin previously fell below $70,000 on June 2 due to rising ETF outflows.
