On June 4, the price of the leading cryptocurrency fell to $61,351. Amid this negative trend, the market faced a significant wave of long position liquidations.
Hourly chart of BTC/USDT on Binance. Source: TradingView.At the time of writing, Bitcoin is trading at $63,581.
Following Bitcoin's decline, altcoins also entered the "red zone": Ethereum tested values below $1,800, Solana dropped to $69, and XRP was trading at $1.17.
Source: CoinMarketCap.In the past 24 hours, the total volume of forced liquidations in the market reached approximately $1.63 billion, with the majority being long positions at $1.38 billion.
Source: CoinGlass.Analyst Riya Segal from Delta Exchange commented to The Economic Times, linking the sell-off to a combination of factors: ongoing outflows from spot Bitcoin ETFs, geopolitical instability, and the breach of key support levels, which triggered a cascade of liquidations.
Experts at CoinDesk noted that the $65,000 zone was a crucial technical threshold. A price consolidation below this level paves the way for testing the $60,000 mark.
Simultaneously, the Deribit options exchange has seen a surge in interest for put positions with strike prices of $50,000, $55,000, and $65,000, expiring at the end of June.
Additional pressure on the market is coming from institutional demand trends. On June 3, U.S. spot Bitcoin ETFs recorded a net outflow of $396.6 million, continuing a negative trend that has persisted since May 15 for 13 consecutive sessions.
Source: SoSoValue.Giottus CEO Vikram Subburaj emphasized that the lack of capital inflow into funds has deprived the asset of the support that contributed to its growth earlier this year.
It is worth noting that on June 2, Bitcoin fell below $70,000 amid increasing outflows from ETFs.