Over the past 24 hours, the crypto market has witnessed more than $2.15 billion in liquidations. Bitcoin [BTC] accounted for $910.64 million among this figure, with $834.07 being long liquidations.
Tuesday, the 2nd of June, saw the largest liquidation numbers since the market crash on the 5th of February. On that day, $1.844 billion in long positions alone were liquidated across the market. With this, the Crypto sentiment once again entered in the “extreme fear” territory. Whales and Big Financial Institutions were dumping their holdings. Meanwhile, S&P 500 has been making new ATHs with Nasdaq hitting record high as well.
Some reports suggested that traders moved 53.8k Bitcoin, all at a loss, into exchanges within 24 hours. This marked the most lopsided short‑term holder transfer of the year. The fact that every coin was sold at a loss shows a fear‑driven exit by buyers who entered near the local highs above $80K.
Seller exhaustion can help the market discover a bottom, though not every capitulation guarantees one. Therefore, investors should remain cautious of further losses, especially if inflows to exchanges and outflows from ETFs remain unchanged.
With Fed rate decision ahead and amid global uncertainty, it would be interesting to watch BTC's next move as upcoming weeks would be crucial for its market. As of now, at the time of writing this article, BTC is being trade around $63,700 and has seen a drop of 12.5% in its price over the week and stands at the market capitalization of $1.28 Billion.