Bitcoin Falls Below $66,000 as Spot ETF Outflows Hit Record 12-Day Streak
US spot Bitcoin ETFs recorded $519 million in net redemptions on June 2, extending a 12-day outflow run that is the longest since the funds launched. Bitcoin dipped to nearly $65,000, its lowest level since March, as analysts debated whether further downside lies ahead.
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The Outflow Streak
US spot Bitcoin ETFs posted another $519 million of net redemptions on June 2, extending the longest outflow run since the funds began trading, according to The Defiant. CryptoPotato reports the streak has now lasted 12 days, a sequence it says has not occurred before for these products. Sources differ on how the streak is measured, with The Defiant focusing on the June 2 figure and CryptoPotato describing the cumulative 12-day pattern, so the two accounts should be read as complementary rather than as separate counts.
Price and Forced Selling
The Defiant reports that the redemptions tipped a leveraged market into $1.86 billion of forced selling. CryptoPotato reports that Bitcoin dropped to nearly $65,000 at its low, its weakest level since March, after trading well below $70,000 in recent sessions. Neither source gives a single closing price for the day, so the $65,000 figure should be treated as an intraday low.
Institutional Flows and Issuer Selling
CryptoPotato argues that the outflows indicate pension funds and hedge funds have reduced their exposure. It also states that ETF issuers, named as BlackRock and Fidelity among others, have been selling physical Bitcoin to meet redemptions, adding pressure to the spot market. The Defiant's report does not describe issuer-level sales, and the attribution of selling to specific institution types is CryptoPotato's interpretation rather than a confirmed breakdown.
Analyst Forecasts Diverge
Forecasts for further declines vary widely. Analyst Ali Martinez said a break below $71,300 to $73,000 could lead to a decline of similar magnitude. X user Ted pointed to $55,000, and crypto critic Peter Schiff said a break below $50,000 could send Bitcoin to $20,000. Another X user, bee, projected a fall to $47,000 to $51,000 by October. Max Crypto noted that the Relative Strength Index has dropped below 30, a level he said has historically preceded a rally of nearly 40%. These are individual forecasts, not verified data, and they conflict with one another.
Exchange Balances
CryptoPotato reports that more than 2.72 million BTC are held on centralized exchanges, the highest level since March. The publication notes this does not guarantee a further decline but raises potential selling pressure. The Defiant's article does not cite exchange balance data.
Why It Matters
For Traders
With the RSI reported below 30 and $65,000 marked as a recent low, price levels near $65,000 to $71,000 are where the outflow and forced-selling dynamics will be tested in the coming sessions.
For Investors
Twelve consecutive days of net ETF redemptions is a notable shift in institutional demand, and its persistence will matter more than any single session's outflow figure.
For Builders
Products that rely on ETF flow data or on exchange balance metrics should account for the divergence between issuer redemptions and reported on-chain movements when modeling near-term liquidity.
This article is for information only and is not financial advice. Read the full disclaimer.
