Bitcoin moved back above $61,000 on June 6 after briefly falling below $60,000 overnight, avoiding a deeper break for now after a sharp selloff hit stocks, bonds, and crypto at the same time.
The token fell as low as $59,227 before buyers returned, then traded around $61,000, still down about 1.3% on the day. The recovery mattered because $60,000 had become a closely watched level after several days of pressure. A clean failure there could have encouraged more forced selling in a market already dealing with heavy liquidations.
According to the source report, roughly $1.60 billion in crypto positions were liquidated over 24 hours across about 308,000 traders, with long positions accounting for $1.21 billion. Bitcoin saw $534 million in liquidations, while ether saw $423 million.
Why Bitcoin fell with stocks instead of trading on its own
The immediate trigger came from outside crypto. A strong U.S. nonfarm payrolls report on June 5 pushed markets to rethink the Federal Reserve path. Instead of treating the jobs data as a simple sign of economic strength, traders priced in a tougher rate outlook.
The report says swaps moved to fully price a rate increase by the end of 2026, a reversal from earlier expectations for cuts under newly confirmed Fed chair Kevin Warsh. Two-year Treasury yields rose 12 basis points to 4.16%, the dollar strengthened, and risk assets sold off.
That matters for bitcoin because the asset is still heavily affected by liquidity expectations. When rates are expected to stay higher, speculative assets often lose support. Bitcoin may be pitched as an alternative monetary asset, but in stressed trading windows it can still behave like a high-beta risk asset, especially when leverage is built up.
The pressure was not limited to crypto. The Nasdaq 100 fell about 5%, its steepest drop since April 2025, while a chipmaker gauge dropped 10%. The S&P 500 fell 2.6% and failed to complete what would have been a tenth straight weekly gain. Crypto was caught in the same risk-off move, not isolated from it.
The ETF bid weakened at the wrong moment
Bitcoin had already been sliding toward $60,000 during the week. The source report points to a record run of spot bitcoin ETF outflows and Strategy’s first bitcoin sale since 2022 as factors that removed buyers who had helped support the price.
That is an important detail. Bitcoin’s 2026 market structure depends not only on retail traders or crypto-native funds, but also on institutional flows through ETFs and large balance-sheet holders. When those flows reverse, the market can lose a stabilizing source of demand just as macro pressure rises.
A simple way to think about it: if a trader bought bitcoin with leverage near $65,000 assuming ETF inflows would keep absorbing supply, the same position looks very different when ETF flows turn negative and Treasury yields jump. The price does not need to collapse for that trade to become fragile. A move through a watched level such as $60,000 can trigger margin calls, stop-losses, and forced liquidations that add selling pressure unrelated to long-term conviction.
Altcoins showed the real damage
Bitcoin’s bounce above $61,000 helped steady the headline number, but the broader crypto market remained badly bruised. Ether was down 21.6% over seven days to around $1,575. Solana was down 23.7% to $63. XRP, dogecoin, and BNB were each down between 13% and 20%.
That pattern is typical during leverage-led selloffs. Bitcoin often falls first because it is the most liquid asset, but smaller and more volatile tokens usually suffer larger percentage losses once risk appetite disappears. Traders who need to reduce exposure sell what they can, while highly levered altcoin positions can unwind faster because liquidity is thinner.
Even Hyperliquid’s HYPE, which had outperformed during much of the recent weakness, was down 9.9% over the same stretch. That suggests the selloff was not just a rotation from weaker tokens into stronger crypto narratives. It was a broader reduction in risk.
What the rebound actually says
The recovery from $59,227 to above $61,000 says buyers were still willing to defend the area below $60,000. It does not prove that the selloff is over.
The stronger signal is that crypto’s support stack became less reliable all at once: ETF outflows reduced spot demand, macro data pushed yields and the dollar higher, equity markets sold off, and leverage forced traders out of positions. Any one of those can pressure bitcoin. Together, they can turn an orderly decline into a liquidation event.
For investors and operators watching the market, the practical implications are narrower than the price drama suggests:
- ETF flows matter: sustained outflows can weaken the bid that helped support bitcoin during earlier advances.
- Rates still matter: bitcoin remains sensitive to changes in expected Federal Reserve policy, especially during crowded risk-on trades.
- Leverage changes the speed: liquidations can make a normal pullback feel like a market break, even if spot buyers later step in.
- Altcoin losses carry more information: deeper declines outside bitcoin often show how much speculative risk is being removed.
What to watch next
The next test is whether bitcoin can hold the reclaimed $61,000 area and build distance from $60,000, or whether the bounce becomes another selling opportunity. ETF flow data will be especially important because the recent slide was tied partly to outflows after a period when ETF demand had been a major support.
Macro data also remains central. If strong economic numbers keep pushing markets toward higher-rate expectations, crypto may struggle to separate from the broader risk trade. A calmer bond market and a steadier Nasdaq would make it easier for bitcoin buyers to regain control.
The liquidation figure is the clearest reminder from this episode. Bitcoin did not need a crypto-specific shock to break below $60,000. A macro repricing, weaker institutional flows, and too much leverage were enough.