Bitcoin falls to $65,600 as ETF outflows accelerate

Bitcoin briefly fell to roughly $65,600 on June 3 after a run of heavy redemptions from spot bitcoin exchange-traded funds and a disclosed corporate sale deepened selling pressure. The price briefly traded below $66,000 as leveraged positions were forced to close.

Spot bitcoin ETFs recorded an estimated $2.8 billion to $3.5 billion in cumulative outflows over the recent withdrawal streak, the longest such streak since 2024. Strategy disclosed a sale of 32 BTC, its first in nearly four years; the firm is one of the more visible corporate holders of bitcoin.

More than $1.8 billion in leveraged crypto positions were liquidated across a 24-hour period, the largest such total since February. Long-only liquidations exceeded $1.35 billion, while about $136 million of short positions were closed, reflecting a heavy skew toward long positions being forced out.

The decline affected the wider crypto market. Ether fell below $1,900 as prices across tokens moved lower and overall volatility rose. At the same time, global equity indexes pushed to fresh highs, creating a divergence between traditional stock markets and crypto price moves.

Traders are watching the $65,000 area as near-term technical support. Market participants say a decisive break below that level could open a test of $60,000, while a slowdown in ETF outflows and a reduction in forced selling could ease downward pressure.

Attention in the coming days will focus on ETF flows and any further corporate activity in bitcoin holdings, along with indicators of whether forced liquidations continue to drive price moves.