Bitcoin’s June Bloodbath Explained: Causes, Market Impact, And Outlook
Bitcoin fell sharply in early June, losing more than $1.28 billion in long positions as it moved toward the $60,000 area. The drop was tied to a broader risk-off shift in US markets after stronger-than-expected May jobs data, which raised expectations that the Federal Reserve will keep policy restrictive and increased rate-hike odds from 40% to 57%. The selloff hit multiple assets, not just crypto. Bitcoin also showed signs of excessive leverage: funding rates stayed positive during the decline, open interest remained elevated, and leverage built up quickly before being flushed out. Demand weakened further as US Bitcoin spot ETFs saw about $1.40 billion in weekly net outflows, while exchange inflows rose, suggesting more coins were moving toward potential selling. Bitcoin is trading near $61,593, and $60,000 is the key support level to watch.
