Bitcoin dropped below the $60,000 mark as selling accelerated across the crypto market. On June 5, BTC fell to an intraday low near $59,100 before stabilizing around $59,400 at the time of writing. The move extended a roughly 10-day slide of about $19,000 from recent highs and pushed Bitcoin under a closely watched support level for the first time since 2024.
The latest wave of selling followed stronger-than-expected U.S. labor data. The economy added 172,000 nonfarm payrolls in May, well above expectations of 85,000, while the unemployment rate stayed at 4.3%. Revisions also added 93,000 jobs to the previous two months, reinforcing the view that labor conditions remain firm and weakening the case for near-term Federal Reserve rate cuts.
Rate-cut hopes fade as markets price in tighter policy risk
BNP Paribas added to the hawkish shift this week by dropping its call for stable policy and forecasting three Fed rate hikes starting in December. The bank pointed to persistent inflation risks, resilient employment conditions, and the potential effect of the U.S.-Iran conflict on energy prices.
After the jobs report, Polymarket showed a 52% chance of a Fed rate increase before year-end. CME FedWatch put the probability of rates being higher by December at 42.7%. The repricing hit risk assets broadly. Gold fell about 3.5%, while silver lost 7.5%, indicating that investors were cutting exposure across asset classes rather than rotating into precious metals.
Leverage unwind deepens the selloff
Derivatives markets intensified the decline. CoinGlass data showed that more than $155 million in crypto long positions were liquidated in just one hour, while total liquidations over the past 24 hours exceeded $1.7 billion. Once Bitcoin lost the $60,000 level, forced selling picked up across major exchanges as liquidation engines were triggered.
Options markets are now centered on the $60,000 strike. According to Deribit Chief Commercial Officer Jean-David Péquignot, put options at that level account for more than $1.2 billion in notional open interest. If Bitcoin remains below that threshold, market makers may need to hedge short gamma exposure by selling spot BTC or futures, a setup that can add to short-term volatility.
ETF inflows return while on-chain data shows stress among newer holders
Institutional flows offered a limited sign of stabilization. Data from SoSoValue showed that U.S. spot Bitcoin ETFs recorded about $3 million in net inflows on June 4, ending a streak of 13 consecutive trading days of withdrawals. That run had pulled $4.37 billion from the funds. The inflow was small, but it broke the longest stretch of persistent ETF selling this year.
On-chain indicators are also flashing conditions associated with capitulation. Analyst Seth said the share of Bitcoin holders currently in profit has fallen to a long-term trendline that matched major cycle lows in earlier drawdowns. Market commentator Scott Melker said short-term BTC holders are now realizing losses at the largest level on record, and that the short-term holder realized profit/loss ratio has hit a new all-time low.
Melker also said that long-term holders now control roughly 5.3 million BTC at a loss. That figure is above post-FTX levels and marks the largest amount of underwater long-term supply since the COVID-era market crash.
$55,000 becomes the next major support zone
On the daily chart, Bitcoin is trading well below the Supertrend indicator, which sits near $69,700 and now acts as immediate resistance. Recovery attempts under that level have failed, leaving sellers in control of the short-term trend. Momentum indicators remain weak as well. The MACD line is sharply below the signal line, and the histogram continues to expand in negative territory after the breakdown from the $72,000 to $75,000 range.
With $60,000 no longer holding, traders are watching the February low near $55,000 as the next key support area. A decisive break below that zone could expose the psychological $50,000 level and set off another liquidation-driven leg lower. For bulls, reclaiming $60,000 is the first requirement. A move back above the $69,700 resistance area would be needed to invalidate the current bearish structure.