Bitcoin slides to $66,700 as longs get flushed and ETFs keep bleeding

Bitcoin fell roughly 6.75% to around $66,700 on Tuesday, its lowest level since early April, triggering one of the sharpest leverage wipeouts in months across cryptocurrency derivatives markets.

Leveraged longs bear the brunt

According to @coinglass_com data cited in the original report, $1.48 billion was liquidated across 221,187 traders in a 24-hour window, with long positions accounting for $1.35 billion of that total. The single largest hit was a $27.5 million $BTC position on Hyperliquid. This forced deleveraging was the largest volume seen since February, according to data compiled by CoinGlass. The structure pointed to a long squeeze rather than a short squeeze. Once Bitcoin lost the $70,000 to $72,000 zone, forced selling accelerated the move and left little room for relief.

ETF exodus and a narrative shift

US spot Bitcoin ETFs logged a record 11 straight sessions of net outflows totaling about $3.45 billion as Bitcoin's price slid toward $70,000. That is the longest withdrawal streak since the products launched in January 2024. BlackRock's IBIT led the selling. Spot Bitcoin ETF outflows have persisted for 11 straight days, and BlackRock's IBIT recorded $440.3 million in reductions on June 1, according to SoSoValue data.

Strategy's sale of 32 Bitcoin, its first since 2022, and slowing ETF and corporate treasury accumulation suggest institutional demand that helped fuel Bitcoin's rally may be weakening. That sale dented the widely held narrative that the firm would never reduce its holdings.

Capital rotation is adding further pressure. The slide comes as a revival of the artificial intelligence trade kept fueling Wall Street momentum, with stocks rising on hopes for an agreement that could end the conflict that has roiled financial markets. The S&P 500 hit a record high in the same period, drawing risk appetite away from crypto assets.

Bitcoin's price is down almost 50% from an all-time high of around $126,000 reached in October. The sell-off is the product of several forces converging at once: a leveraged derivatives market caught offside, a record ETF outflow streak, a dent in the Strategy never-sell narrative, and institutional capital finding a home in equities and AI-linked names instead.

Sources:
CoinDesk: Bitcoin's biggest ETF selloff yet hits $3.4 billion
Bloomberg via Yahoo Finance: Crypto liquidations top $1 billion as Bitcoin's slide deepens
Bitcoin.com News: 86% long liquidation wave exposes Bitcoin's breakdown