Bitcoin is having its roughest week in nearly two years, sliding to around $62,500 by midday Friday, June 5, 2026, after a steady stream of selling that erased gains built up through the spring. The world’s largest cryptocurrency has lost nearly 15% since Monday, marking its worst weekly performance since July 2024. Ether has fallen more than 17%, while overall crypto trading activity has dropped to its lowest monthly volume since October 2023.
The decline has unfolded as a sustained sell-off rather than a single dramatic crash, but the damage has been significant. Bitcoin now trades more than 50% below its October 2025 record high near $126,200, after reaching an intraweek high around $75,850 before falling roughly 22%. The move has pushed prices back to levels last seen in early February and toward a closely watched long-term support area near $61,626.
What Is Driving the Sell-Off
Three major developments have fueled this week’s decline.
The first was the disclosure of the first known bitcoin sale by Strategy, the company formerly known as MicroStrategy and still the largest corporate holder of bitcoin. The second was a wave of withdrawals from spot bitcoin exchange-traded funds. The third was a large transfer from a wallet linked to the long-defunct Mt. Gox exchange, reviving fears of additional supply entering the market.
Among those factors, ETF withdrawals may have the broadest impact on everyday investors.
Spot bitcoin ETFs experienced approximately $2.97 billion in outflows during a 10-session withdrawal streak in late May, one of the largest periods of redemptions since the products were introduced. When investors withdraw money from these funds, managers typically sell bitcoin to meet redemption requests, increasing downward pressure on prices.
Macro Forces Add Pressure
Crypto markets are also facing broader economic headwinds.
Investors continue to grapple with persistent inflation, uncertainty surrounding future Federal Reserve rate cuts, and a stronger U.S. dollar. Higher interest rates make cash and bonds more attractive while reducing demand for riskier assets that generate no income.
Geopolitical tensions also weighed on sentiment. Escalating concerns surrounding U.S.-Iran relations during late May contributed to a broader shift away from speculative investments.
A Rare Split Between Stocks and Crypto
One of the most notable developments this week is the divergence between traditional financial markets and digital assets.
Major U.S. stock indexes have continued to approach or reach record highs while bitcoin and ether have suffered sharp losses. For much of the past two years, cryptocurrencies and equities moved largely in tandem as investors embraced risk assets. This week, however, money flowed into stocks while leaving crypto markets.
The disconnect has puzzled many market participants.
According to CryptoQuant founder Ki Young Ju, U.S. spot bitcoin ETFs have accumulated more than 509,000 bitcoin since bitcoin last traded near current levels in March 2024. During the same period, Strategy acquired roughly 650,000 additional bitcoin.
Combined, those buyers absorbed more than 1.24 million bitcoin, yet prices have returned to roughly the same level.
The implication is straightforward: despite enormous institutional demand, enough selling pressure elsewhere in the market has offset those purchases.
Trouble in the Altcoin Market
The week’s sharpest decline occurred outside bitcoin.
Privacy-focused cryptocurrency Zcash plunged more than 30% after a security researcher disclosed a vulnerability that could potentially have allowed an unlimited number of tokens to be created.
The news quickly spread across the privacy-coin sector, dragging down competitors including Monero and Dash. Selling intensified after investor Arthur Hayes disclosed that his firm had exited its entire Zcash position.
The episode highlighted how technical vulnerabilities in a single cryptocurrency can rapidly impact confidence across related sectors of the market.
Where Things Stand Now
Forced liquidations have accelerated the decline.
Data from Coinglass showed approximately $1.2 billion in liquidations over a 24-hour period, with roughly three-quarters of those losses coming from traders who had wagered on higher prices.
Technical analysts are closely watching the $65,000 level as a key support zone. A sustained move below that threshold could open the door to further downside toward $60,000, while a successful hold could trigger a short-term recovery.
For crypto exchanges, miners, and corporate holders such as Strategy, a prolonged downturn could pressure asset values and reduce trading-related revenue. For retail investors who entered through bitcoin ETFs during the spring rally, the week serves as a reminder that cryptocurrency prices remain highly sensitive to broader economic conditions, including Federal Reserve policy and movements in the U.S. dollar.
As always, crypto remains one of the fastest-moving sectors in financial markets, and conditions can change rapidly.
Sources: Coinglass liquidation data; CryptoQuant founder Ki Young Ju; spot bitcoin ETF flow data; CoinDesk market data as of June 5, 2026.
JBizNews Desk — Markets
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