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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 InThe cryptocurrency market experienced a sharp downturn as total market capitalization dropped more than 5% to approximately $2.37 trillion. This decline was primarily triggered by record-breaking outflows from Bitcoin funds, which reached $1.44 billion last week. According to reports, the selling pressure led to the liquidation of $455 million in long positions after Bitcoin fell below the critical $70,000 threshold.
This aggressive correction occurs as high-risk assets face headwinds from volatile U.S. Treasury yields, with spot Bitcoin ETFs recording their largest weekly outflow since their January debut. In comparison to sector peers, MicroStrategy (MSTR) shares have faced significant downward pressure alongside the underlying asset, while ongoing regulatory scrutiny from the SEC continues to weigh on retail sentiment per market data.
Traders should watch key support levels for Bitcoin near $66,000 and Ethereum toward $1,840 to gauge the correction's duration (close June 3, 2026). Looking ahead, the market will focus on the upcoming U.S. Core PCE Price Index release; as the Fed's preferred inflation gauge, any deviation from forecasts could significantly impact broader risk appetite and crypto price action.
Update: Providing further context on the sell-off, Yoshitaka Kitao, CEO of SBI Holdings, attributed the institutional exit from crypto to capital rotation ahead of highly anticipated IPOs for SpaceX, OpenAI, and Anthropic. According to Kitao, this shift suggests a strategic reallocation of portfolios toward the artificial intelligence and aerospace sectors, temporarily drawing liquidity away from digital assets.
Update: Concerns have intensified following warnings of a potential systemic crash that could wipe $2 trillion off the total cryptocurrency market capitalization. This outlook stems from growing panic among Bitcoin investors, which analysts suggest could trigger a broader sell-off beyond current technical support levels.