Bitcoin experienced a sharp downturn on June 4, with the leading cryptocurrency briefly touching $61,351 before recovering slightly to trade around $63,581 at press time. The decline triggered a cascading wave of forced position closures across the market, totaling approximately $1.63 billion in liquidations over a 24-hour period, with long positions accounting for the vast majority at $1.38 billion. The broader crypto market followed Bitcoin's negative trajectory, with Ethereum dipping below $1,800, Solana sliding to $69, and XRP trading at $1.17, reflecting widespread investor caution.

Market analysts attribute the selloff to a confluence of adverse factors, including sustained capital withdrawals from U.S. spot Bitcoin ETFs, which recorded a net outflow of $396.6 million on June 3, marking thirteen consecutive sessions of negative flows since May 15. Riya Segal from Delta Exchange told The Economic Times that geopolitical tensions combined with the breach of critical support levels triggered the liquidation cascade, while experts from CoinDesk emphasized that losing the $65,000 threshold has opened the door for a potential test of the $60,000 level. Simultaneously, options traders on Deribit have shown heightened interest in put positions with strike prices at $50,000, $55,000, and $65,000 expiring in late June, signaling expectations for continued downside pressure.

Vikram Subburaj, CEO of Giottus, highlighted that the absence of fresh capital inflows into investment funds has stripped the asset of the crucial support that fueled its rally earlier in the year. This downturn follows Bitcoin's breach of the $70,000 level on June 2, which was also driven by accelerating ETF outflows.

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The material is prepared solely for informational purposes and does not constitute a financial advice or recommendation.