The crypto market is down more than 2.8% today, with the total market cap falling to $2.39 trillion. The selloff has spread across nearly every major coin.
The Bitcoin price has fallen over 5% in one day. It dropped below $67,000 for the first time in two months. XRP is down nearly 5%. Ethereum lost about 3%. Solana and BNB are both down around 3% as well.
The drop started with Bitcoin selling, which then set off a wave of liquidations across the whole market. Also, Bitcoin continues to show a strong negative correlation with gold, measured at -61%, pointing to a growing divergence between crypto assets and traditional inflation hedges.
With over $1.25 billion wiped out in liquidations and billions of dollars leaving Bitcoin ETFs, traders are trying to understand what caused the drop.
What you'll learn 👉
Why Is the Crypto Market Crashing?
One big reason for today’s drop is how many leveraged bets got wiped out. CryptoReviewing reported that the Bitcoin price fell from $71,000 to $67,600. That triggered $616 million in liquidations. In total, the crypto market saw about $1.26 billion in liquidations within 24 hours.
The liquidation data is particularly unusual. CryptoReviewing noted that the one-week liquidation map contains roughly $486 million in long liquidations compared to an enormous $10.89 billion in short positions stacked above the market.
I've never seen anything quite like this before…$BTC just dumped from $71,000 to $67,600 liquidating $616M.
— CryptoReviewing (@CryptoReviewing) June 2, 2026
$1.26B total Crypto liquidations in 24 hours!!!
Now, the 1 week liquidation map has:
– $486M Longs
– $10.89B Shorts!!!
That's 22x more shorts than longs, all the way… https://t.co/IGblttUGKr pic.twitter.com/E3CqvI8UfJ
That means there are about 22 times more shorts than longs waiting to be liquidated if Bitcoin starts moving higher. For now, however, the immediate selling pressure has overwhelmed the market.
Institutional demand has also weakened. Coin Bureau reported that U.S. spot Bitcoin ETFs have now seen money leave for 11 straight trading days. Total outflows hit $3.45 billion.
That is the longest selling streak since these ETFs launched in 2024. When money flows out of ETFs, it takes away buying power from big investors. That usually pushes the Bitcoin price down when the market feels uncertain.
🚨 BITCOIN ETFS HIT THEIR LONGEST SELLING STREAK ON RECORD
— Coin Bureau (@coinbureau) June 2, 2026
U.S. spot Bitcoin ETFs have recorded withdrawals for 11 straight trading sessions, totaling $3.45 BILLION, their LONGEST outflow streak since launching in 2024.
Time to worry? pic.twitter.com/nZOyegn4mk
Also, capital appears to be flowing into traditional markets. The Kobeissi Letter reported that the S&P 500 climbed to a fresh record high, pushing its market value to $69 trillion. Base58 Labs argued that global capital is becoming increasingly concentrated in U.S. equities and AI-related investments, leaving less liquidity available for speculative assets such as cryptocurrencies.
BREAKING: The S&P 500 erases losses and surges to its highest level on record, now worth $69 trillion. pic.twitter.com/emCSwVl2nz
— The Kobeissi Letter (@KobeissiLetter) June 2, 2026
Market structure also contributed to the decline. BSC News reported that more than $350 million in crypto long positions were liquidated within a single hour as the Bitcoin price dropped nearly 5% to $67,933. On-chain data showed Bitcoin dominance climbing to 57.89%, indicating traders were moving capital away from riskier altcoins during the selloff.
Some traders tied the drop to a small Bitcoin sale by Michael Saylor, the executive chairman of MicroStrategy. Ash Crypto noted that Bitcoin fell about $5,500 to a two-month low of $67,076 after Saylor sold 32 BTC worth roughly $2.5 million. That transaction was actually pretty small. But market mood turned sour fast anyway, and it added to the broader selling pressure.
What the BTC Chart Is Showing
We looked at the chart. The Bitcoin price is still struggling after losing the $69,000 support line. Once it broke below that, selling came in fast and pushed it down to $67,000. The drop was so quick because traders using leverage got forced out once their stop losses and liquidations triggered.
The next major support is between $66,000 and $67,000. If buyers can hold that zone, Bitcoin could try to bounce back to $69,000 and maybe even retest $71,000, where this whole drop began. A move above those levels would improve short-term mood and force some short sellers to buy back their bets.
Related Bitcoin News: Crypto Price Prediction for Today, June 2: XRP, Toncoin (TON), Bitcoin (BTC)
If Bitcoin cannot hold above $66,000, sellers could aim for $64,000 next. But here is something to watch. There is an unusually large pile of short positions stacked above the market, over $10.89 billion in shorts up to $79,300. That means any strong bounce could trigger a powerful short squeeze and send prices higher very fast.
The crypto market is getting hit from a few directions at once. Heavy Bitcoin selling. Record outflows from ETFs. Huge liquidations. And money moving into traditional markets. When Bitcoin fell below $67,000, it wiped out billions in market value and set off over $1.25 billion in liquidations.
Even with all this bad news, traders are still watching one thing closely. There is a huge pile of short bets stacked above the market. If buying comes back, those short positions could turn into fuel for a strong Bitcoin price recovery in the coming weeks.
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