Bitcoin has fallen 50% from its all-time high, erasing approximately $988 billion in market value between October 2025 and April 2026. The correction was triggered by a $19 billion liquidation event in October and sustained by U.S. spot Bitcoin ETF outflows totaling $3.83 billion between May 1 and June 4, reversing $3.29 billion in inflows recorded throughout March and April combined. Geopolitical tensions involving the United States, Iran, and Israel, alongside capital rotation into traditional markets ahead of major IPOs including SpaceX's June 12 Nasdaq debut, have intensified selling pressure and institutional caution.
U.S. Spot Bitcoin ETFs Record $3.83 Billion in Outflows
U.S. spot Bitcoin ETFs recorded net outflows totaling $3.83 billion between May 1 and June 4, according to data from SoSoValue. The figure exceeds the $3.29 billion in net inflows recorded throughout March and April combined. The scale of outflows points to deterioration in market sentiment, with institutional investors positioning for the possibility of further downside rather than a near-term recovery. Concerns surrounding unresolved tensions involving the United States, Iran, and Israel continue to weigh on financial markets, with no clear indication that a lasting resolution is imminent.
Capital Rotates to Traditional Markets Ahead of SpaceX IPO
Capital flight from Bitcoin appears linked to rotation into traditional financial markets ahead of a busy IPO window. SpaceX filed its S-1 and targets a Nasdaq debut on June 12 under the ticker SPCX, pricing shares at $135 to raise approximately $75 billion at a roughly $1.77 trillion valuation. Anthropic, the company behind Claude, is also preparing for public listing. The S&P 500 has gained more than 11% on a year-to-date basis and recently reached a record high of 7,629.80. Bitcoin remains down approximately 29% year-to-date, highlighting the extent to which investor confidence has shifted away from speculative assets.
Bitcoin Holds Above $60,000 Support Level
From a technical standpoint, Bitcoin's market structure continues to favor the downside. A weekly close below the $60,000 support wick, followed by continued bearish follow-through, would significantly increase the probability of a deeper correction. Under such a scenario, Bitcoin could revisit the $52,000-$53,000 range, a region that aligns with key support levels on the broader chart structure. Bitcoin remains within what can be interpreted as a long-term accumulation zone, with the lower boundary of that range near $52,550.
FAQ
What caused Bitcoin's 50% decline from its all-time high?
Bitcoin's correction was triggered by a $19 billion liquidation event in October and sustained by U.S. spot Bitcoin ETF outflows totaling $3.83 billion between May 1 and June 4, geopolitical tensions involving the United States, Iran, and Israel, and capital rotation into traditional markets ahead of major IPOs including SpaceX's June 12 Nasdaq debut.
How much did U.S. spot Bitcoin ETFs lose between May 1 and June 4?
U.S. spot Bitcoin ETFs recorded net outflows totaling $3.83 billion between May 1 and June 4, according to data from SoSoValue. The figure exceeds the $3.29 billion in net inflows recorded throughout March and April combined.
What technical support levels are Bitcoin traders monitoring?
Bitcoin traders are monitoring the $60,000 support level. A weekly close below this level, followed by continued bearish follow-through, could lead Bitcoin to revisit the $52,000-$53,000 range, with the lower boundary of the long-term accumulation zone near $52,550.
