Bitcoin Plunges Below $70,000 as Crypto Market Sheds $280 Billion in One Week

Cryptocurrency Market Cap Falls From $2.53 Trillion to $2.25 Trillion

The cryptocurrency market has shed $280 billion in value over the past week. Bitcoin tested $61,500 overnight before recovering to approximately $63,000. The market cap declined from $2.53 trillion last Wednesday to $2.25 trillion as of Tuesday morning.

Bitcoin now trades more than 50% below its all-time high of $126,000 reached in October 2025. The flagship cryptocurrency dropped 3.2% in 24 hours and 22.3% over the month. At current prices around $63,436, Bitcoin faces its steepest decline since early this year.

Every major coin now shows double-digit losses on the month. The selloff has triggered massive liquidations in leveraged positions. Ethereum trades at $1,768 after a 25.8% monthly slide. Solana dropped 4.6% in 24 hours to $68.38, down 20.9% over the past month.

Strategy Breaks Four-Year Bitcoin Buying Streak

Three main drivers fuel the market downturn. Strategy sold Bitcoin for the first time in nearly four years. U.S. spot Bitcoin ETFs extended their outflow streak to 13 trading days. Liquidations totaled $1.76 billion in leveraged positions within 24 hours.

The company sold 32 Bitcoin for $2.5 million, marking its first disposal since 2022. Retail traders on Stocktwits pointed to executive chairman Michael Saylor‘s decision as a primary reason. The sale shocked markets accustomed to Strategy‘s aggressive accumulation strategy.

Sentiment has turned sharply negative across trading platforms. Bitcoin became the top trending ticker on Stocktwits on Tuesday. Retail sentiment trended in ‘extremely bearish’ territory over the past day. Chatter rose to ‘high’ from ‘normal’ levels.

Bitcoin ETFs Record Longest Outflow Streak Ever

U.S. spot Bitcoin ETFs face their longest redemption streak since product launches. The funds recorded 11 to 13 consecutive days of net outflows. Lark Davis, crypto analyst, stated persistent withdrawals removed a major demand source. Capital rotation away from digital assets accelerated throughout the period.

The BlackRock sell-off surprised many market participants. Billionaire Mark Cuban suddenly flipped on crypto amid the collapse. The shift highlighted changing institutional sentiment toward digital assets. Professional investors reassessed their cryptocurrency allocations as losses mounted.

CoinGlass data showed over $1.23 billion in crypto liquidations on Tuesday alone. Long bets accounted for $1.09 billion of forced unwinds. The overall cryptocurrency market fell nearly 4% to $2.42 trillion. High leverage amplified downward price movements across all major coins.

Mt. Gox Transfers Fuel Distribution Concerns

The defunct exchange Mt. Gox transferred roughly 10,400 Bitcoin recently. Davis noted this fueled concerns about additional creditor distributions. Many creditors acquired their Bitcoin before 2014. They remain deeply profitable even at current prices.

The potential selling pressure creates significant overhead supply for the market. CryptoQuant analysts wrote in a note that Bitcoin shows signs of weakness. Large supply pressure comes from those who bought between six and 12 months ago. This group creates “a huge barrier” to future recovery.

“After enduring losses through the crash at the beginning of the year, this group is choosing a safe solution by pushing supply onto exchanges as bitcoin recovered to the $80,000 area, creating a potential selling pressure after which the price adjusted downward,” the analysts stated.

Altcoins Amplify Bitcoin’s Downward Moves

XRP hit a 15-week low at $1.17, down 17.3% on the month. The token followed Bitcoin‘s slide and lost even more ground. High-beta altcoins like Solana and XRP amplify Bitcoin’s moves. On the way down, that means they fall steeper than the benchmark.

Ethereum performed no better than other major assets. The second-largest cryptocurrency struggled alongside smaller-cap tokens. Market-wide selling pressure affected all digital asset categories equally. No major cryptocurrency escaped the downdraft.

The crypto market has lost nearly $2 trillion from its combined market capitalization. The market hit a record $4.4 trillion in October last year. Alex Kuptsikevich, FxPro chief market analyst, noted the market reached its lowest point since late March. This marks further development of downward momentum that began mid-month.

Federal Reserve Rate Cut Odds Drop Sharply

Markets now price a 68.8% probability of zero Fed rate cuts in 2026. The shifting monetary policy outlook weighs on risk assets. Fresh U.S.-Iran strikes on June 2 rattled markets. The attacks shook the fragile ceasefire that held since April.

Geopolitical tensions added to risk-off sentiment across global markets. Cryptocurrency markets proved particularly sensitive to these developments. Kuptsikevich noted capital interest remains focused on equity markets. The Nasdaq 100 hits new highs despite alarming cryptocurrency market capitalization contraction.

“The sentiment index plummeted to 11, its lowest level since early April,” Kuptsikevich said. “This is dangerous territory where a hunt for stop-loss orders on long positions could occur.”

Fear and Greed Index Hits Extreme Lows

The crypto fear and greed index plunged back toward its all-time low. The measure dropped well into the “extreme fear” zone. At 11, the index reached its lowest level since early April. The reading represents a lagging indicator of market sentiment.

Davis pointed to Bitcoin’s historical four-year market cycle as the dominant force. He stated that while most factors remain short-term, cycle timing continues to exert greatest influence. Historically, Bitcoin experiences large drawdowns after major bull-market peaks.

“Bitcoin’s playing its own game,” Davis wrote in a newsletter.

CryptoQuant analysts warned that exchange inflow volume needs proper absorption. Without sufficient demand, Bitcoin will face deeper correction waves. The supply pressure from previous buyers creates ongoing resistance. Recovery depends on how well the market absorbs this selling.