Between 13:15 and 13:30 (UTC) on June 4, 2026, BTC recorded a -0.55% return over a 15-minute short-term cycle, with the price falling back into the 63,066.8 to 63,629.3 USDT range, for an amplitude of 0.88%. This modest continuation of the decline came against the backdrop of BTC breaking below the $64,721 key support level on June 3. Over the past two days, the cumulative drop exceeded 14%, and the market is under extreme stress.
The main driver of this move is record outflows from Bitcoin spot ETFs. In early June 2026, U.S. Bitcoin spot ETFs saw net outflows for 11 consecutive trading days, with total outflows reaching $3.5 billion. Of that, $3.4 billion in net outflows over the week set a historical record for ETFs since they were launched in January 2024. ETF holdings fell from about $12.7 billion to $12.36 billion. Issuers transferred large amounts of BTC to exchanges to carry out redemption operations, directly injecting sell-pressure supply into the spot market.
Meanwhile, the aftershocks in the derivatives market are still being released. In the 24 hours of June 2, total crypto liquidations ranged from $1.624 billion to $1.8 billion, involving 263,429 traders. Of this, $363 million in Bitcoin contract liquidations were recorded, and long liquidations accounted for as much as 93%. Funding rates turned negative, and open interest plunged from about $42 billion to $28.4 billion. Rapid deleveraging liquidations created a negative feedback loop. In addition, hawkish Fed monetary policy expectations continued to heat up. In early June, the ISM Manufacturing PMI came in at 54.0, the strongest level since May 2022. The market is pricing in a zero probability of a rate cut in June, which systematically suppresses risk assets. On the geopolitical front, worsening Iran-related developments further intensified market panic.
The Fear and Greed Index has sharply fallen to 11, placing the market in extreme fear. In the short term, BTC still faces the combined impact of derivatives deleveraging pressure and technical sell pressure. Key things to watch include whether the $63,000 support level can hold, whether ETF fund flows continue to deteriorate, and the direction of macro monetary policy. Investors should be wary of short-term volatility risks and avoid high-leverage positions.
