Bitcoin Swept into Liquidation, Altcoins Also Plunge
Bitcoin fell below US$60,000 for the first time since October 2024, extending the market's favored asset's reversal following Donald Trump's re-election, becoming a major victim of the rapidly changing speculative landscape. In New York trading on Friday (June 5), Bitcoin briefly fell to around US$59,101, and has now fallen more than half from its peak above US$126,000 in October of last year.
The pressure came from a combination of outflows from Bitcoin ETFs, rising geopolitical tensions, and concerns about the resilience of the market's major demand sources. Strategy strategist Michael Saylor came under scrutiny after revealing a rare Bitcoin sale, raising new questions about the "digital-asset treasury" model that previously fueled the bull market.
At the same time, the "speculative asset" ecosystem is changing. Funds that once flowed more automatically into crypto are now being diverted to other instruments, while AI stocks have become the most dominant growth theme, diminishing Bitcoin's appeal. At the retail level, interest was also divided among short-term options and prediction markets, while within crypto itself, stablecoins and perpetual futures captured a portion of the attention that had been concentrated in previous cycles on Bitcoin.
The weakness spread to altcoins. Ether fell sharply to its lowest level since April 2025, while XRP, Solana, and Dogecoin also fell by more than 5%. This indicates market-wide pressure, not just a Bitcoin-specific issue.
What makes this decline notable is that the momentum came at a time when the crypto industry was experiencing numerous policy "wins": more welcoming regulators, broader institutional acceptance, and a clearer regulatory framework. However, these milestones have not automatically triggered a wave of new demand, while the liquidation of large positions and the Iran war have dampened risk appetite.
The "inflation hedge" narrative has also weakened. Recent inflation concerns have favored gold over Bitcoin, leading the market to question Bitcoin's robust hedge against rising interest rates and volatility. (Arl)
Source: Newsmaker.id
