KEY POINTS
- Bitcoin fell from $72,840 to below $62,000 between June 2-5, triggering $5.4 billion in long liquidations over five days in the worst weekly rout since the FTX collapse.
- Three catalysts converged: Strategy's first BTC sale since 2022, Mt. Gox moving 10,422 BTC ($739M) to new wallets, and record 13-day Bitcoin ETF outflows totaling $4.37 billion.
- Traders should watch the $60,000 psychological support level and whether spot Bitcoin ETF flows turn positive next week after the 13-day outflow streak ended June 5.
Bitcoin suffered its worst weekly decline since the FTX collapse, plunging from an intraweek high of $72,840 to below $62,000 between June 2 and June 5 as three separate supply shocks converged into a liquidation cascade that wiped out $5.4 billion in leveraged long positions and flushed more than 272,000 traders from the market. The selling started with a catalyst nobody expected and accelerated through a chain of forced liquidations that exposed just how leveraged the market had become.
The first domino fell on June 1 when an 8-K filing revealed that Strategy — the company formerly known as MicroStrategy — had sold 32 BTC between May 26 and May 31 for approximately $2.5 million at an average price of $77,135 per coin. The amount was trivial — roughly 0.004% of Strategy's 843,706 BTC holdings — and the proceeds were earmarked for preferred stock dividends due June 30. But the symbolism was devastating. Strategy had not sold a single bitcoin since December 2022, and Michael Saylor's absolutist "never sell" stance had become a foundational narrative for the Bitcoin bull case. The market read the filing as a regime change and sent BTC down 3.1% to $65,391 within hours.
The Mt. Gox Trigger
The selling intensified on June 2 when blockchain data showed the Mt. Gox estate transferring 10,422 BTC worth approximately $739 million to a new wallet at 04:47 UTC — the estate's largest single transfer in months. The split transaction sent 10,306 BTC to a previously unused address while routing 116 BTC to a known Mt. Gox wallet, mirroring administrative moves tied to creditor distributions.
Mt. Gox still holds roughly 34,504 BTC valued at $2.43 billion with a repayment deadline of October 31, 2026. The roughly 19,500 remaining creditors — many of whom bought bitcoin before the exchange collapsed in 2014 at prices under $1,000 — hold coins with unrealized gains exceeding 6,000%. The market's assumption is that a significant percentage will sell upon receipt, creating sustained overhang through the October deadline.
The combination of Strategy's sale and the Mt. Gox transfer hit a derivatives market that was dangerously stretched. Bitcoin's futures open interest leverage ratio had climbed to 2.63% by June 2, and the unwinding was violent. A midday flash crash on June 2 knocked the price from $71,765 to $67,895, triggering $1.8 billion in liquidations — the largest single-day wipeout of 2026. By June 4, bitcoin had fallen to $61,655 as cascading margin calls forced additional selling.
ETF Outflows Compound the Damage
The spot Bitcoin ETF complex amplified the downturn instead of cushioning it. Between May 15 and June 3, US-listed spot Bitcoin ETFs recorded 13 consecutive trading days of net outflows totaling $4.37 billion — the longest losing streak since the products launched in January 2024. BlackRock's iShares Bitcoin Trust absorbed approximately three-quarters of the damage, shedding $3.3 billion. Total assets across all US spot Bitcoin ETFs fell from $104.29 billion to $82.83 billion in roughly three weeks.
The outflow streak ended on June 5 with a marginal $3.05 million net inflow, but the damage to sentiment was done. The ETF channel, which bulls had promoted as a structural bid under Bitcoin's price, functioned instead as a liquidity drain during the selloff.
Additional macro headwinds compounded the technical damage. Rising crude oil prices from the US-Iran conflict fueled inflationary pressure, undermining expectations for Federal Reserve rate cuts. Signs emerged of capital rotation out of crypto and into AI equities, with Nasdaq-listed AI stocks absorbing flows that might previously have gone to digital assets.
Where Support Lies
Bitcoin entered the weekend near the $62,000 level after briefly breaching it on June 5. The $60,000 round number represents the next major psychological support, and a break below it would put the February 2026 lows in play. On the bullish side, cumulative lifetime net inflows into spot Bitcoin ETFs still exceed $55 billion, and the 13-day outflow streak ended — suggesting the forced selling may be largely exhausted.
The week ahead hinges on whether ETF flows stabilize or resume their outward trajectory. Watch Monday's ETF flow data closely. A second consecutive day of net inflows would signal that institutional sellers have finished repositioning. Another outflow day reopens the path to $58,000.
