Bitcoin and Ethereum extended sharp declines during the first week of June, with Bitcoin falling roughly 15% below $63,000 and Ethereum sliding to its lowest level since April 2025. The selloff followed heavy selling across digital assets as investors pulled billions of dollars from crypto investment products and reduced exposure to risk assets. The declines came amid one of the cryptocurrency market's most difficult stretches in recent years, with the broader market recording significant losses as institutional demand weakened.
ETF Outflows Drive Market Pressure
U.S. spot Bitcoin ETFs recorded 13 consecutive trading days of net outflows, with investors withdrawing more than $4 billion since mid-May, according to data cited by CoinDesk. The prolonged redemption streak weighed on sentiment across the crypto market as fund managers sold underlying assets to meet withdrawals.
CoinDesk reported that Bitcoin, Ethereum, Solana and XRP ETFs collectively experienced approximately $4.4 billion in outflows across 13 consecutive trading sessions. Bitcoin-focused products accounted for the majority of withdrawals, with BlackRock's iShares Bitcoin Trust among the funds recording notable redemptions.
Strategy Sells Bitcoin Holdings
Strategy, formerly known as MicroStrategy and one of the largest corporate holders of Bitcoin, sold part of its holdings for the first time since 2022. The move drew significant attention from investors because Strategy has long been viewed as one of Bitcoin's most committed corporate backers.
According to The Economic Times, Bitcoin's retreat erased a substantial portion of the gains recorded earlier in the year, while Ethereum faced additional pressure from weakening institutional demand.
Liquidations Accelerate Decline
Market data cited by CoinMarketCap showed that billions of dollars in leveraged positions were wiped out as Bitcoin broke through key price levels. Those forced liquidations accelerated selling activity and contributed to sharp intraday swings across major digital assets.
According to Reuters, growing enthusiasm surrounding AI investments and the upcoming SpaceX initial public offering attracted substantial capital, drawing investor attention away from cryptocurrencies and other speculative assets. Markets simultaneously grappled with inflation concerns and higher energy prices linked to the conflict involving Iran, which increased uncertainty across asset classes.
Despite the decline in prices, some blockchain indicators remained relatively stable. The Economic Times reported that on-chain activity and long-term holder behavior did not reflect widespread panic selling. Market participants continued to hold significant portions of their Bitcoin positions even as prices retreated sharply.
FAQ
What caused Bitcoin to fall below $63,000 during the first week of June?
Bitcoin fell roughly 15% below $63,000 during the first week of June due to heavy selling across digital assets, sustained withdrawals from spot cryptocurrency ETFs totaling over $4 billion since mid-May, and institutional selling including Strategy's first Bitcoin sale since 2022.
How much money was withdrawn from crypto ETFs during the selloff?
Bitcoin, Ethereum, Solana and XRP ETFs collectively experienced approximately $4.4 billion in outflows across 13 consecutive trading sessions, with U.S. spot Bitcoin ETFs recording more than $4 billion in net outflows since mid-May according to data cited by CoinDesk.
