The crypto market is bleeding. Bitcoin slammed through the $62,000 barrier early Thursday, extending a sell-off that has now erased months of recovery as traders face the largest liquidation event of 2026.
Data from CoinGlass confirms that over $1.84 billion in leveraged long positions were liquidated across the crypto market in the past 24 hours, with Bitcoin longs accounting for roughly $780 million of that total. Ethereum longs added another $340 million in forced closures as the sell-off accelerated through Asian trading hours.
Bitcoin briefly touched $61,655 on major exchanges, its lowest level since late February, before staging a modest bounce toward $63,000. The price collapse represents a decline of more than 18% from May highs above $76,000.
Record ETF Outflows Tell the Story
The sell-off has been building for weeks. US spot Bitcoin ETFs recorded their largest and longest withdrawal streak since launching in January 2024, with investors pulling roughly $3.45 billion across 11 consecutive trading sessions through Monday, according to data from SoSoValue.
The 11-day run of net redemptions surpassed the previous record of eight consecutive days set in February 2025. BlackRock’s IBIT, the largest spot Bitcoin ETF, saw its first-ever two-week stretch of consistent outflows, a psychological blow to institutional confidence.
Bitcoin’s biggest ETF selloff yet hits $3.4 billion as AI stocks keep climbing\nhttps://www.coindesk.com/markets/2026/06/02/bitcoin-s-biggest-etf-selloff-yet-hits-usd3-4-billion-as-ai-stocks-keep-climbing
Analysts at CryptoQuant warned last week that Bitcoin is increasingly becoming a “market of holders rather than buyers.” ETF and corporate treasury accumulation has slowed markedly, and analysts say the current ETF outflow streak suggests the primary demand driver of Bitcoin’s rally may be fading.
Strategy’s First Bitcoin Sale Since 2022 Adds Pressure
Adding to the bearish mood, Strategy (MSTR) disclosed on Monday that it sold 32 BTC worth roughly $2.5 million to fund distributions on one of its preferred stock offerings. While the sale represented a tiny fraction of Strategy’s holdings — the company still holds over 226,000 BTC — it marked the first Bitcoin sale by Michael Saylor-led firm since December 2022.
Saylor broke his silence on the sale, emphasizing it was a routine capital management move tied to preferred stock obligations rather than a shift in Bitcoin strategy. But the optics were poor. For months, Saylor has championed an aggressive buy-and-hold approach, and the first sale in three-and-a-half years rattled retail sentiment.
Why is Bitcoin Crashing?
Multiple factors are converging:
First, the rotation trade. Nvidia is up 6% this week, and AI-linked equities continue to attract risk capital that might otherwise flow into crypto. Analysts at CoinDesk note that institutional investors appear to be rotating out of Bitcoin — which they treat as a high-beta macro trade — and into AI stocks and high-profile IPOs.
Citigroup analysts published a note Wednesday refuting the idea that Strategy’s BTC sale caused the crash. Instead, they pointed to broader macro factors: the dollar has been strengthening, bond yields remain elevated, and the AI trade has become a dominant narrative that is pulling liquidity from every other risk asset.
“Crypto is losing the momentum trade,” one analyst told CoinDesk. “Bitcoin isn’t crashing because of Saylor. It’s crashing because the market found something it likes more right now.”
Second, the dollar strength. A hawkish pivot from the Federal Reserve has pushed the DXY above 105, traditionally a headwind for Bitcoin and crypto markets. Higher-for-longer rates make yield-bearing assets more attractive relative to non-yielding assets like Bitcoin.
Third, miner selling pressure. On-chain data from CryptoQuant shows that Bitcoin miners have increased their BTC sales to exchanges over the past week, likely to cover operational costs amid declining profitability following the April 2024 halving.
Market Outlook
Bitcoin is now trading below its 200-day moving average for the first time since October 2023, a technical signal that analysts watch closely. The 200-day MA sits around $68,000, and reclaiming that level would be the first sign of recovery.
Presto Research notes that Bitcoin’s drawdowns this year have coincided with rallies in AI stocks and gold, suggesting that markets are scaling back crypto exposure in favor of assets with clearer near-term catalysts.
Frequently Asked Questions
Is Bitcoin going to recover above $70,000?
Bitcoin’s recovery depends on halting the ETF outflow streak and broader macro conditions stabilizing. A return above the 200-day moving average at $68,000 would be the first bullish signal. Analysts say a recovery to $70,000 is possible but unlikely without a catalyst such as a Fed pivot or positive regulatory news.
Should I buy the dip on Bitcoin?
Market conditions remain uncertain. The ETF outflow streak and miner selling pressure suggest further downside risk. Most analysts recommend waiting for a confirmed reversal pattern or a clear catalyst before deploying significant capital.
Why did Bitcoin crash today?
Bitcoin crashed due to a combination of record ETF outflows ($3.45 billion over 11 days), $1.84 billion in market-wide liquidations, a rotation from crypto into AI stocks, the first Strategy BTC sale since 2022, and a strong dollar weighing on risk assets. No single factor caused the crash — it was a convergence of several bearish signals.
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