Bitcoin slides below $62,000 as ETF outflows hit $4.37 bn record

Bitcoin dropped to $61,655 on June 4, its lowest price in months and more than 50 % below the October 2025 peak of $126,200, as a 13‑day streak of spot Bitcoin ETF outflows erased $4.37 bn from fund assets and sparked $1.8 bn in leveraged liquidations [1][2].

ETF outflows amplify the sell‑off

U.S. spot Bitcoin ETFs recorded net outflows for 13 consecutive trading days from May 15 to June 3, the longest streak since their launch in January 2024. The $4.37 bn outflow—about 59,000 BTC—was led by BlackRock’s iShares Bitcoin Trust, which alone shed $3.3 bn, roughly 75 % of the total [1]. Total ETF assets fell from $104.29 bn to $82.83 bn, a $21.46 bn drop that coincided with Bitcoin’s price falling about 21 % from above $80,000 to $63,000 over the same period. The outflows turned the ETF complex from a net inflow position to a net outflow for the first time since its inception, underscoring how institutional fund flows now act as a marginal bid or ask for Bitcoin’s price.

Leverage primed the crash

On June 2, Bitcoin futures open‑interest leverage rose to 2.63 % (perpetual 2.48 %), the highest since the October 2025 crash that preceded a $126k rally. Elevated funding rates meant long traders were paying a premium, indicating crowded bullish bets. When the flash‑crash on June 2 knocked Bitcoin from $71,765 to $67,895, the over‑leveraged longs triggered roughly $1.8 bn in liquidations, wiping out more than 272,000 traders and pushing the price below the average purchase price of many holders for the first time since late 2023 [2].

Context and market structure

The ETF outflow streak set all‑time records for 7‑, 10‑ and 20‑day outflow windows, with the 20‑day window reaching $5.42 bn (≈73,080 BTC). This sustained selling suggests a structural shift rather than a one‑off event; the ETFs now represent about 6.36 % of Bitcoin’s circulating market cap, down from over 7 % in mid‑May [1]. The combination of institutional redemptions and high leverage created a feedback loop: ETF sales supplied Bitcoin to the market, depressing price, which in turn triggered leveraged liquidations that further fed supply.

What to watch

• $62,000 support – a breach could invite additional short‑covering or trigger stop‑loss cascades.
• ETF flow data – weekly net inflow/outflow trends will indicate whether the marginal bid is turning back positive.
• Leverage ratios – any rise above the 2.6 % threshold could signal renewed liquidation risk.

The episode shows that Bitcoin’s price now moves in tandem with regulated fund flows and on‑chain leverage dynamics, raising the question of how future ETF activity will shape the asset’s volatility and upside potential.