Bitcoin plunges sharply to $70.6k, "Double V bloodbath," extreme fear index at 23, daily liquidation of 632 million wiping out longs, ETH drops below 2000

Bitcoin dropped to a low of $70,686 this morning, approaching the 14-day bottom at $70,961; Ethereum fell below the $2,000 mark. 24-hour total liquidation on the network reached $632 million, with longs suffering a bloodbath accounting for about 70%. ETF experienced the largest outflow in 2026, Strategy sold BTC for the first time in four years, combined with rising interest rate expectations, the Fear & Greed Index plummeted to 23 "Extreme Fear."
(Background: Bitcoin weakly traded at $73,400, unable to shake off the lows, with shorts forced to liquidate $193 million)
(Additional context: Fed rate cuts are unlikely! US April PCE inflation surged to 3.8%, domestic demand remains hot, savings rate dropped to 2.6%)

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• 24-hour liquidation of $632 million, longs account for up to 70%
• Triple negative factors: ETF massive outflows, Strategy selling, interest rate ghost reappears
• Other mainstream coins decline simultaneously: SOL, XRP drop more sharply
• Fear Index at 23 "Extreme Fear", US stocks hit new highs, crypto diverges

Bitcoin's sharp decline this morning, at 08:59 (UTC+8) on June 2, BTC is reported at $71,277, down -3.56% in 24 hours, with a intraday low of $70,686, just one step away from the 14-day bottom $70,961 set earlier this morning; Ethereum also lost the $2,000 level, at $1,996, down -0.96% in 24 hours, with a low of $1,956 during the day. Compared to BTC's peak of $77,998 (May 21) and ETH's peak of $2,147 (May 22), market cap has evaporated significantly within just 11 days, with bulls retreating across the board.

24-hour liquidation hits $632 million, longs account for up to 70%

This wave of decline has inflicted severe losses on leveraged longs. According to CoinGlass real-time data, total liquidation across the network in the past 24 hours reached $632,955,672 (about 632 million USD), dominated by a bloodbath in longs: nearly $355.32M liquidated in the last 12 hours; $52.48M in the last 4 hours, with longs at $34.94M and shorts at $17.54M, longs making up about 67%; in the last hour, $4.87M liquidated, with longs at $3.51M and shorts at $1.37M, longs further increasing to 72%. Retail traders chasing the rally and leveraged positions bore the brunt of this rapid sell-off.

Triple negative factors: ETF massive outflows, Strategy selling, interest rate ghost reappears

This decline is not without signs. Multiple fundamental negative factors have recently converged:

① Largest outflow from spot ETFs since 2026, US spot Bitcoin ETFs have experienced a net outflow of approximately $2.97 billion over the past 10 trading days; in May, institutional withdrawals exceeded $2.3 billion, marking the weakest month since the end of 2025, with institutional buying support clearly loosening.

② Strategy (formerly MicroStrategy) sold BTC for the first time in four years, on June 1, Strategy filed an 8-K with the SEC revealing the sale of 32 BTC at an average price of $77,135, with proceeds used to pay STRC preferred dividends. This marks the company's first net sale in nearly four years, shaking market confidence in the "strategic accumulation" narrative.

③ May closed lower, June opened with a crash, BTC closed May at $73,751, down about 4.4%, the third red month in 2026; June opened below $72,000, with bearish momentum surging.

④ Interest rate hike expectations suddenly shift, US April PCE inflation surged to 3.8%, sticky inflation remains stubborn; the federal funds futures market is now pricing a greater than 50% chance of rate hikes in 2026, rapidly shifting from last year's "rate cut consensus," with liquidity easing expectations sharply contracting, putting crypto markets under pressure.

Other mainstream coins decline simultaneously: SOL, XRP drop more sharply

Major coins also show bleak performance. Solana (SOL) is at $80.89, down -2.37% in 24 hours, with a low of $79.11 during the day; from its 14-day peak of $87.68 (May 22), it has fallen over 7.7%. XRP drops even more, at $1.2888, down -3.69% in 24 hours, with a low of $1.2794, retreating about 7.3% from its peak of $1.39 (May 19).

Fear & Greed Index at 23 "Extreme Fear", US stocks hit new highs, crypto diverges

Market sentiment has fully collapsed. The Crypto Fear & Greed Index today hits 23 (Extreme Fear), worsening from yesterday's 29 (Fear) and last week's 34 (Fear), marking the lowest sentiment in recent times.

Paradoxically, US stocks are rising against the trend. On June 1, Eastern Time, S&P 500 closed at 7,599.96 (+0.26%, hitting a new all-time high), Nasdaq closed at 27,086.81 (+0.42%, also a new high), with tech and energy sectors leading the rally for nine consecutive weeks. The divergence between crypto and traditional equities highlights capital selectively withdrawing from digital assets and flowing back into mainstream markets.

Key points to watch: whether BTC can hold the $70,000 level (the recent low of $70,961 is close); whether ETF daily inflow/outflow stabilizes; and whether the June FOMC rate hike signals further strengthen, which will be critical for the short-term direction.