Crypto Markets Shed $1.8 Billion in Liquidations as BTC Drops

Bitcoin price drops to $66,900 as $1.8B in liquidations hit the market. Spot BTC ETFs record 12 consecutive days of outflows led by BlackRock.

The total market capitalization of the cryptocurrency sector has contracted to approximately $2.32 trillion, marking a 3.5% decline over the last 24 hours.

At the time of writing, Bitcoin is trading at $66,900, registering a 4.17% daily drop and an 11.7% decrease for the week. The leading cryptocurrency briefly dipped below the $66,000 threshold earlier today before managing to recover some of its losses.

Ethereum fell by 5.5%, trading at $1,875, while Solana lost nearly 6% on the day. Among the major assets, Hyperliquid is the sole outlier continuing its ascent, recording a 16% gain on a weekly basis.

According to data from Coinglass, $1.8 billion has been liquidated from the crypto markets in the last 24 hours. Long positions accounted for $1.5 billion of the total liquidation volume, while the remaining $300 million came from short positions. Notably, Bitcoin alone was responsible for $846 million of the wiped-out equity.

Bitcoin and Ethereum ETF Outflows Persist

Data from FarSide Investors reveals that spot BTC ETFs registered daily net outflows of $519 million on June 2. The heaviest pressure originated from BlackRock’s IBIT fund, which saw withdrawals of nearly $389 million, followed by Fidelity’s FBTC at approximately $45 million and Grayscale’s GBTC at over $83 million. these negative results mark a record 12th consecutive day of outflows for the most popular spot exchange-traded funds.

A similar trend is visible with Ethereum ETFs, which posted net outflows of approximately $90 million. BlackRock’s ETHA fund was the primary contributor to this exodus, though most other products also ended the day in negative territory.

The persistent outflows suggest that institutional investors are temporarily scaling back their exposure to digital assets amid heightened market uncertainty.

Alt ETFs Attract Limited Interest

In contrast to the leading cryptocurrencies, some alternative ETF products continue to attract capital, albeit in significantly smaller volumes.

On June 2, Solana ETFs recorded net inflows of $6.5 million, entirely supported by Grayscale’s product. Hyperliquid ETFs also remained in positive territory, though with a more modest net inflow of $3.1 million.

XRP ETFs saw no significant flows during the last session, indicating a wait-and-see approach from investors.

Sentiment Remains Cautious

The Fear and Greed Index has dropped to 26 points, remaining deep within the “Fear” zone. Simultaneously, the “Altcoin Season” indicator stands at 53 points, signaling a gradual erosion of Bitcoin’s dominance in the crypto market. Interestingly, the topic of an “Altseason” is gaining traction on the X platform and ranks among the most discussed themes.

Market participants continue to monitor U.S. macroeconomic data, ETF flow dynamics, and Federal Reserve policy, which remain the primary drivers for short-term cryptocurrency movements. If outflows from institutional products persist in the coming sessions, pressure on BTC and other leading cryptocurrencies is likely to remain high.