Bitcoin investors should remain cautious of further losses, especially if inflows to exchanges and outflows from ETFs remain unchanged.
In the past 24 hours, the crypto market witnessed $1.76 billion in liquidations. Bitcoin accounted for $810.64 million among this figure, with $734.07 being long liquidations.
Tuesday, the 2nd of June, saw the largest liquidation numbers since the market crash on the 5th of February. On that day, $1.844 billion in long positions alone were liquidated across the market.whales and sharks were dumping their holdings. It did not help sentiment that the U.S. stock market was seeing a multi-week rally into historic highs. Short-term holders who bought when Bitcoin rallied beyond $80k have been caught off guard recently.
A month ago, it appeared possible (Farside Investors’ data showed that spot Bitcoin ETF flows have been negative since the 15th of May. A cumulative $3.963 billion in ETF outflows in just over two weeks was recorded, with a streak ofnoted that traders moved 53.8k Bitcoin, all at a loss, into exchanges within 24 hours. This marked the most lopsided short‑term holder transfer of the year.
The fact that every coin was sold at a loss shows a fear‑driven exit by buyers who entered near the local highs above $80K. The positive side to the capitulation was that this kind of event tends to mark a local price bottom. The logic is that weak hands get flushed out, and only high-conviction holders are left standing. Seller exhaustion can help the market discover a bottom, though not every capitulation guarantees one.
Therefore, investors should remain cautious of further losses, especially if inflows to exchanges and outflows from ETFs remain unchanged. The liquidation and spot ETF flow figures were remarkable and helped explain the depth of the selling pressure. Liquidations put downward pressure on the market, forcing panic among short-term holders and weak hands, driving more losses and greater liquidations. AMBCrypto was founded in 2018 with a mission to simplify and bring the latest blockchain and cryptocurrency news to our readers.
We have quickly grown into the digital news source for an emerging generation of cryptocurrency enthusiasts, reaching more than a million readers on a monthly basis, across the globe.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Bitcoin Treasury Firm Strive Plans $4 Billion Capital Raise to Expand BTC HoldingsStrive, a Bitcoin treasury firm, announced a $4 billion capital‑raising initiative to accelerate its Bitcoin purchases. The firm expects to increase the size of both its $ASST and $SATA ATM programs by $2.1 billion each, reflecting rising liquidity and demand. With the $4.2 billion raised, Strive could acquire around 60,000 BTC at current prices of $70,000 per BTC, scaling its holdings from 16,500 BTC to over 50,000 BTC and potentially surpassing Metaplanet to rank among the top three Bitcoin treasury firms. Strive's stock ASST slipped following the news, while broader market sentiment towards BTC treasury firms turned negative after Strategy's $2.5 million BTC sale.
Read more »
Bitcoin is down today - Will sustained ETF outflows pull BTC further?Bitcoin was down because of souring investor sentiment, as reflected in the Spot ETF netflow figures since mid-May.
Read more »
XRP loses KEY support - Can $1.11B in ETF assets reverse the trend?XRP faced technical weakness despite rising ETF demand and another major escrow lockup.
Read more »
Bitcoin/Gold faces steep drop as 2026 becomes BTC's 'most oversold year'Could the historical underperformance of Bitcoin in comparison to gold indicate a significant buying opportunity?
Read more »