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The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
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Sign InIn a move reflecting a sharp pivot in institutional risk appetite, the cryptocurrency market faced a steep sell-off that sent Bitcoin down by 6.4%. The price dropped to $65,708 during Wednesday's Asian session, breaking through previous support levels. According to reports, this decline saw Ethereum fall below the $1,900 mark, while Bitcoin ETFs recorded $1.44 billion in outflows and MicroStrategy executed its first Bitcoin sale since 2022, valued at $2.5 million.
This slump highlights a growing divergence between digital assets and traditional equities, as the MSCI All Country World Index hit a fresh all-time high driven by the AI-led rally. Looking at peers, Ethereum's breach of the $1,900 level signals intensified selling pressure across the board. Market data indicates that persistent outflows from the Grayscale Bitcoin Trust (GBTC) continue to weigh on net flows, contrasting sharply with the institutional buying momentum seen earlier in the year.
Traders are now closely watching the $65,000 psychological support level, with Bitcoin trading at $65,708 (close June 3, 2026). Regarding the economic calendar, the market awaits the US Core PCE Price Index data and upcoming remarks from Federal Reserve officials. These events will be primary catalysts for interest rate expectations and global liquidity conditions, which remain the key drivers for alternative asset demand.