Bitcoin drops 14 per cent in June as ETF outflows deepen

Bitcoin fell below $62,000 after a sharp June pullback extended losses across spot and derivatives markets.

The cryptocurrency traded near $62,116 after losing around 3 per cent over the past 24 hours.

The latest move left Bitcoin down nearly 14 per cent for the month and brought the $60,000 level back into focus.

Traders pointed to stronger selling pressure, weaker liquidity, elevated bond yields, inflation concerns, and renewed demand for artificial intelligence stocks.

Large Bitcoin holders also added pressure after moving significant amounts of BTC to Binance in early June.

Whale transfers reached about 8,200 BTC on 2 June before another 6,400 BTC moved to Binance on 4 June.

Average monthly whale inflows to exchanges have climbed from around 1,200 BTC in mid-April to more than 2,800 BTC.

Heavy exchange inflows often suggest that large investors may be preparing to sell, reduce risk, or rebalance positions.

However, analysts warn that whale transfers do not always lead to immediate selling because some moves can happen after a major price decline.

Bitcoin exchange-traded funds also showed signs of weaker demand as investors pulled money from the sector.

Bloomberg ETF analyst Eric Balchunas said around $4.4bn had left Bitcoin ETFs over the past month.

The monthly outflows pushed year-to-date ETF flows into negative territory, although total net inflows still stood near $55bn.

Balchunas noted that BlackRock’s IBIT and similar products still had gains for the year despite the broader outflow trend.

Broader Bitcoin demand also weakened as spot demand fell by about 272,000 BTC over 30 days.

Futures demand dropped by another 229,000 BTC, bringing the combined demand decline to roughly 501,000 BTC.

The drop marked the steepest demand contraction of the current Bitcoin cycle.

Bitcoin also continued to lag US equities as the S&P 500 and Nasdaq stayed close to record highs.

Investors have favoured AI-linked shares and upcoming technology listings while reducing exposure to Bitcoin.

The price chart showed Bitcoin breaking below the rising channel that had supported the market from February to late May.

Bitcoin lost support near $70,000 before sliding quickly into the $62,000 to $63,000 range.

The token now trades below short-term moving averages, with the 8-day average near $70,062 and the 18-day average near $73,697.

Those moving averages now act as possible resistance levels if Bitcoin attempts a recovery.

The ADX reading of 36.74 signals a strong trend and supports the current bearish bias.

The ATR near 2,130 points to elevated volatility and leaves room for sharp rebounds or deeper losses.

Short-term support remains between $62,000 and $63,000 as traders watch whether buyers can defend the range.

A break below that zone could send Bitcoin back towards $60,000.

A deeper sell-off may shift attention to the $58,000 to $55,000 area.

Analyst Peter Brandt said Bitcoin had already reached his first downside target from the February low but could still fall further before finding a tradable bottom.

Brandt also suggested that October could become an important period for a possible market base.

Bitcoin has now reached its 200-week moving average for the first time since 2023.

Long-term buyers have historically watched that level closely during deeper market pullbacks.

Still, persistent ETF outflows, rising whale transfers, and weaker demand show that Bitcoin’s market structure remains fragile.

A stronger recovery would likely require Bitcoin to reclaim $65,000 first and then push back above the $70,000 to $74,000 resistance area.

At the time of reporting, Bitcoin price was $62,940.67.