Cryptocurrency markets endured a sharp selloff during the first week of June, with Bitcoin and Ethereum posting steep losses amid persistent ETF outflows, weakening investor sentiment and capital rotation into artificial intelligence (AI)-related equities.
Bitcoin started the week near US$73,500 but slid below US$63,000 by June 5, marking one of its worst weekly performances since late 2022.
Ethereum followed suit, falling below US$1,800 and ending the week near US$1,700 as selling pressure intensified across digital assets.
Market sentiment deteriorated as institutional investors continued to withdraw funds from spot crypto ETFs, while geopolitical uncertainties and broader risk-off trading weighed on demand.
Additional pressure came after major corporate Bitcoin holder Strategy disclosed the sale of part of its Bitcoin holdings, triggering further market concerns.
The decline sparked widespread liquidations across the crypto market, with Bitcoin briefly testing multi-month lows and Ethereum underperforming amid heightened volatility.
Analysts noted that investors increasingly favoured high-growth AI and technology stocks over digital assets, accelerating capital outflows from the crypto sector.
Despite the weak week, on-chain data suggests long-term holders largely remained on the sidelines, indicating limited signs of panic selling.
Investors will continue monitoring ETF flows, macroeconomic developments and geopolitical risks for clues on whether the market can stabilise in the weeks ahead.
