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The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
Following a period of relative stability above the $70,000 mark, the cryptocurrency market experienced a sharp and sudden sell-off that erased recent gains. According to reports, Bitcoin's price began a steep decline on June 2, 2026, triggered by a flash crash that sent the asset tumbling from approximately $71,765 to $67,895. This downward momentum has persisted for three consecutive days following the initial midday price collapse.
This aggressive price action comes as digital assets were attempting to consolidate above recent highs, but the sudden reversal has reignited concerns over extreme market volatility. Compared to historical performance, this rapid descent from levels above $71,000 reflects heightened sensitivity to liquidity flows, with major altcoins like Ethereum and Solana seeing correlated declines per market data. The fact that the trend has lasted three days suggests a strengthening of bearish momentum in the immediate term.
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Sign InTraders are now focusing on the $67,895 level (close of June 4, 2026) to determine if the market can establish a floor or if further liquidations are imminent. Looking ahead at the economic calendar, market participants are bracing for the U.S. Non-Farm Payrolls data on June 5, 2026, which will be a critical catalyst for dollar strength and overall risk appetite in the crypto sector.
Update: On-chain data revealed a massive influx of approximately 54,000 BTC into cryptocurrency exchanges, providing a concrete catalyst for the sustained selling pressure. Analysts noted that this sudden surge in liquid supply was the primary driver behind the asset's inability to stage a quick recovery, deepening the overall price retreat.
Update: A recent BloFin Research report suggests that Bitcoin's current decline is consistent with its historical four-year cycle in terms of depth. The ongoing selling pressure is being attributed to a combination of spot ETF outflows, MicroStrategy activity, and significant liquidity drains caused by major mega-cap IPOs.
Update: Recent technical data shows Bitcoin's Relative Strength Index (RSI) has plunged to 17, signaling extreme oversold conditions that often precede temporary relief bounces. As all major moving averages trend lower, market participants are now shifting their focus to the $61,310 level as the next critical swing low support to stem further declines.
Update: Subsequent data confirmed the scale of the pressure, as Bitcoin ETFs saw net outflows of $733M, including a massive $1.29B block trade in BlackRock's IBIT fund. According to reports, total crypto market liquidations reached $958.8M, while the gap with traditional safe havens widened as spot gold rose to $4,574.