Key facts
- Bitcoin price fell below $60,000, testing support around $61,000-$62,000.
- On-chain analysis suggests a withdrawal of institutional demand, not excessive selling, is the main driver of the correction.
- US spot Bitcoin ETFs experienced outflows, reversing the demand that fueled the 2024-2025 rally.
- Realized Cap data shows a reduction of nearly $40 billion in invested capital on the network.
- Capital appears to have rotated into US equities, especially AI-related companies, due to visible profit growth and near-term catalysts.
- The futures market amplified the decline, with over $150 million in leveraged long positions liquidated between June 3-4.
Bitcoin's price has fallen below $60,000, testing critical support levels around $61,000-$62,000, marking a significant correction from cycle highs. Analysis from XWIN Research Japan, utilizing CryptoQuant data, suggests the primary driver is not geopolitical tensions, Fed policy, or minor selloffs, but rather a fundamental withdrawal of buyer demand. The engine of Bitcoin's 2024-2025 rally was sustained inflows into US spot Bitcoin ETFs, which have now reversed, leading to increased outflows. This, coupled with a persistently negative Coinbase Premium, indicates a withdrawal of durable institutional demand. The Realized Cap metric quantifies this, showing a reduction of nearly $40 billion in invested capital on the network. Capital has rotated into assets with more visible profit growth and near-term catalysts, such as AI-related companies driving the S&P 500 to record highs, rather than Bitcoin's liquidity-dependent structure. The futures market amplified the decline, with over $150 million in leveraged long positions liquidated between June 3 and June 4, but this is seen as a consequence, not the cause, of weakening demand. The current correction is characterized by a lack of buying, not excessive selling, with long-term holders remaining largely intact and exchange balances historically low, distinguishing it from the panic-driven supply excess of the previous cycle.