Bitcoin plunged to the $60,000 zone on June 3-4, hitting intraday lows between $60,000 and $61,500 as leveraged traders got wiped out to the tune of $1.76 billion in a single 24-hour stretch. That figure covers liquidations across the entire crypto derivatives market, but the pain was concentrated in one direction: long positions.
What triggered the drop
Bitcoin had already been weakening throughout early June, falling below the $70,000 level before accelerating its descent toward $60,000.
A major catalyst was sustained outflows from spot Bitcoin ETFs. Institutional money that had been flowing into these products reversed course, adding significant downward pressure on the spot price.
Macro conditions didn’t help either. Rising inflation rates and geopolitical tensions created the kind of environment where institutional investors reassess risk. The combination of ETF outflows and broader risk-off sentiment created a one-two punch that leveraged traders simply weren’t positioned for.
