EL7.AI
CryptoUpdated×3•Originally published 5 June 2026•Updated 5 June 2026•
2 min read

Bitcoin Tests $60,000 Level Amid Record Outflows and Institutional Selling

Key Facts

1Bitcoin price fell to $62,500, remaining 50% below its all-time high.

Amid intensifying pressure on digital assets, Bitcoin is threatening to break critical technical support levels due to a combination of institutional and regulatory selling catalysts. According to reports, Bitcoin's price fell 4.5% to $60,732, placing the $60,000 psychological barrier under immediate threat. This decline followed record weekly outflows of $1.67 billion from crypto funds, with Bitcoin funds accounting for $1.44 billion, while MicroStrategy was forced to sell holdings to meet preferred share redemptions as its paper losses reached $12.6 billion, alongside the US Treasury's seizure of $1 billion in Iranian cryptocurrency.

This downturn highlights heightened volatility in crypto markets compared to traditional assets, as fears of large-scale liquidations grow. Looking at peer performance, Ethereum remained under pressure while the US dollar found support from the Chicago PMI, which recorded a strong 62.7 on May 29, 2026, per market data. Such robust economic data typically dampens the appeal of high-risk assets by reinforcing expectations of prolonged higher interest rates.

Traders are now focused on the $60,000 support level as the final line of defense against a deeper correction, with Bitcoin trading at $60,732 (close June 4, 2026). On the economic calendar, markets are awaiting a speech by Fed Chair Jerome Powell scheduled for May 31, 2026, which will be pivotal in determining global liquidity trends and risk appetite across the cryptocurrency sector.

Latest Updates · 2

  1. Notable·

    Update: Recent on-chain data indicates the market has entered a 'capitulation' phase, with long-term holders realizing $2.4 billion in losses. According to reports, these moves place Bitcoin in a 'fire-sale' territory, suggesting that selling pressure may be reaching a peak as investors reset expectations.

  2. Notable·

    Update: Analysts are noting additional pressure stemming from a shift in investor focus, as capital flows into the AI sector have begun draining momentum and speculative interest from the cryptocurrency market. This rotation reflects a growing preference for tangible tech growth over digital assets within the current liquidity environment.