NEW YORK, June 5, 2026 – Bitcoin traded near $62,725 on Friday, holding just above the psychologically important $60,000 level after a sharp sell-off this week. The largest cryptocurrency by market cap briefly touched a session low of $61,407, as traders assessed whether the decline could accelerate into a more severe downturn.
ETF Outflows and Strategy's Unusual Sale Rattle Market
The recent weakness stems from a combination of factors, including persistent outflows from spot bitcoin exchange-traded funds (ETFs) since mid-May and an unexpected sale by Strategy, the largest corporate holder of bitcoin. Strategy unloaded 32 bitcoin, worth approximately $2.5 million, a small fraction of its 844,000 bitcoin stash. However, the move broke the company's long-standing 'never sell' policy, according to Josh Du, chief investment officer at Animoca Brands, who said it 'shattered' investor trust.
Michael Saylor, executive chair at Strategy, defended the sale on X, describing it as 'capital rotation, not a Bitcoin impairment.' Citi analyst Alex Saunders noted in a research report that sentiment may remain 'lackluster' and that ETF flows are still the 'primary driver' for bitcoin price action.
Broader Market Pressure from AI Trade Rotation
The sell-off in crypto is part of a broader rotation out of risk assets. CoinDesk reported that the artificial intelligence trade, which lifted global risk assets through early 2026, has been fading after Broadcom issued a weaker-than-expected AI-chip outlook. That news dragged down chip stocks and added pressure on cryptocurrencies. Reuters noted that Broadcom's decline also pulled the Nasdaq lower, even as the Dow Jones Industrial Average finished at a record high.
Liquidation Risk at ,000
The $60,000 level is more than a psychological barrier. According to Jean-David Péquignot, chief commercial officer at Deribit, a significant number of institutional players have their basis between $60,000 and $67,000. There is over $1.2 billion in open interest on $60,000 bitcoin put options, which gain value if the price drops. Péquignot warned that a break below $60,000 could trigger a 'cascading wave' of automated long liquidations, as dealers hedging those puts may be forced to sell spot or futures.
Approximately $3 billion in leveraged crypto positions were liquidated over the past two days, according to CoinDesk. Liquidations occur when traders cannot maintain sufficient collateral to support their borrowed bets, forcing positions to close.
Broader Crypto Market Weakness
Bitcoin is not finding support from other major tokens. Ether traded around $1,668, down 5.8%, while Solana fell about 4.7% to $65.69. Zcash plunged more than 40% after Shielded Labs disclosed a bug in its Orchard privacy pool that allowed unlimited fake tokens to go undetected until a fix was implemented.
U.S. spot bitcoin ETFs posted a net inflow of $3.2 million on June 4, according to Farside Investors, following heavy outflows earlier in the week. Standard Chartered's Geoffrey Kendrick maintained his year-end bitcoin price target of $100,000, calling the week 'painful' but suggesting that most of the selling pressure may be over.
Looking Ahead: Payrolls Data in Focus
The next major macro event is U.S. payrolls data, due next week. CoinDesk analysts said a soft number could revive expectations of interest rate cuts, potentially lifting both AI stocks and cryptocurrencies. A strong report would likely have the opposite effect. For now, traders remain fixated on the $60,000 level, which could determine the near-term direction for the entire crypto market.
