Bitcoin Slides 17%, Ethereum 14% as Liquidations Erase $250B From Crypto Market
Crypto markets were hit by a sudden liquidation cascade in early June, catching many traders offside. Bitcoin ($BTC) and Ethereum ($ETH) posted double-digit losses over a 72-hour stretch, with the forced deleveraging knocking about $250 billion off total digital-asset market capitalization. The move has stood out against a calm backdrop in traditional markets, where major U.S. equity indices continue to hover near record highs. The gap has reignited debate over whether this was a crypto-specific liquidity washout, outright manipulation, or an early signal of a broader macro turn.
Bitcoin drove the selloff, dropping 17% in three days. The largest cryptocurrency fell $12,800, sliding from around $74,000 to a local low near $61,300. The speed of the decline sparked roughly $1.1 billion in liquidations across crypto derivatives venues, hitting overleveraged long positions hardest.
Losses quickly spread to altcoins. Ethereum fell 14% alongside bitcoin, breaking key psychological support. The No. 2 token by market value touched a 13-month low of $1,715, its weakest level since April 12, 2025.
Institutional flows added pressure. Four days into June, U.S. spot bitcoin ETFs have recorded about $1.4 billion in net outflows. The pullback comes as investors brace for upcoming U.S. employment data and monitor renewed geopolitical tensions. Analysts say rising Treasury yields have pushed institutional desks to reduce risk, with spot crypto products often treated as a first source of portfolio liquidity.
On trading desks, two narratives are competing. One view points to whale-driven positioning: as global regulatory frameworks evolve, large holders and institutional market makers may be forcing a local flush by triggering stop-losses and liquidating retail longs, then accumulating at lower levels. The other view is that crypto is simply moving first, as the 24/7 market has historically acted as an early liquidity barometer; in this framing, digital assets are pricing in persistent Federal Reserve inflation expectations ahead of any equity-market response.
Traders are now focused on the $60,000 macro support area for bitcoin. A break below that level could set the stage for a more extended bearish phase into the summer.
