Bitcoin plummets below $68k! Coinbase BTC negative premium continues to widen, U.S. buying momentum has completely faded

According to public information, Bitcoin fell below the $68k mark tonight (2nd), with a low of around $67,500, a 24-hour decline of 5%. Along with the sharp price drop, the total liquidation across the network reached between $68k and $1 billion. Data shows that Coinbase’s premium index is significantly negative (-0.1323%), reflecting weak buying interest from U.S. institutions and retail investors.
(Background summary: Bitcoin broke below $69k, Ethereum lost the $2,000 level! Over $740 million in liquidations in 24 hours across the network, nearly 140k people wiped out)
(Additional background: Standard Chartered Bank: Selling Bitcoin by MicroStrategy marks a turning point for gold! Predicts ETH will start surpassing BTC from now on, aiming for $4,000 by year-end)

Bitcoin experienced intense volatility tonight (2nd), officially losing the $68,000 support level. As of Taipei time on June 2nd evening, BTC was trading between $67,500 and $68,000, down approximately 4.8% to 5.2% in the past 24 hours. This rapid decline not only caused Bitcoin to fall sharply from a daily high of $71,800 but also triggered widespread liquidations in the derivatives market.

Statistics show that liquidation amounts in the crypto market over the past 24 hours surged to between $800 million and $1 billion, mostly from long positions. This swift drop triggered panic liquidations, with longs suffering heavy losses, further intensifying selling pressure. Currently, Bitcoin’s key support levels are in the $67,000 to $68,000 range, with resistance at the psychological $70,000 level. If support cannot hold, the market may further decline toward $65,000.

Coinbase Negative Premium Widens, U.S. Buying Momentum Weakens

This decline is not without signs. According to data from Coinglass, as of June 2nd, the Coinbase Bitcoin Premium Index, which measures the flow of mainstream U.S. institutional and dollar funds, reached a recent low of -0.1323%. This index measures the percentage difference between BTC prices on Coinbase and the global average. A positive value usually indicates significant inflow from U.S. institutional funds; conversely, a negative value suggests selling pressure or weaker buying power in the U.S. market.

Market observations indicate that there was a prolonged period of strong positive premium in April, but since May, the index has shifted from moderate to weakening again, with signs of continued expansion. This reflects that U.S. institutional and retail buying interest is currently subdued. While overseas markets remain relatively active, overall momentum is insufficient to rapidly push Bitcoin prices higher.

Macroeconomic Risks and Institutional Dynamics Increase Selling Pressure

In addition to weak U.S. market buying interest, the recent correction was triggered by a cooling of global risk appetite and potential geopolitical and macroeconomic policy uncertainties. Furthermore, some institutional market activities (such as news of Strategy selling Bitcoin) have also heightened investor sentiment pressure.

Analysis indicates that such prolonged negative premiums are common during bear markets or correction phases (like 2022 to 2023). This is not an isolated signal but reflects the divergence in capital flows between the U.S. and global markets. If negative premiums continue to expand, it could intensify short-term downward pressure; conversely, if the index narrows quickly and turns positive, it may signal an early sign of U.S. buying interest returning. Investors should closely monitor ETF fund flows, funding rates, and macro catalysts such as Federal Reserve policies.