Bitcoin price continued to bleed, hitting lows near $59,000. This represents the lowest level for BTC since October 2024, nearly two years. Deflation has caused long-term liquidations and triggered FUD in the market.
Why is the price of Bitcoin collapsing?
At press time, on Friday, June 5, Bitcoin stood at $59,517.46, down 6.84% over the past 24 hours. Today saw total liquidations of $549.80 million, according to Queen Glass Data.
Of this amount, long liquidations amounted to $444.27 million, which could have exacerbated the collapse due to automated selling of traders’ long positions. Furthermore, spot Bitcoin ETFs have recorded 14 sessions of outflows now.
With nearly $5 billion in negative flows, spot Bitcoin ETFs have also added significantly to the selling pressure. He was a deciding factor in the latest bloodbath in the cryptocurrency market, CEO of Bitget Gracie Chen explained newly.
To make matters worse, US jobs data came in stronger than expected. The US Bureau of Labor Statistics revealed this on Friday Nonfarm payrolls rose to 172,000 in May 2026. This number was significantly higher than Wall Street estimates of 85,000.
Furthermore, the US unemployment rate remained unchanged at 4.3%. Since then, the price of Bitcoin has dropped dramatically from $62,500 to $59,000.
Moreover, jobs data indicated that the US Federal Reserve could make about three increases in federal interest rates per… BNP Paribas. This has dampened the sentiment of the cryptocurrency market.
Artificial intelligence factor into play
In addition, people blamed the accident on Michael Saylor The strategy recently sold Bitcoin. Jim Cramer has gone so far as to say: “Saylor killed Bitcoin.” but, Saylor denied These allegations.
Instead, Saylor noted that growth in the AI sector could have contributed to the market sell-off along with immediate outflows of Bitcoin ETFs. He wrote: “Capital markets are funding AI builds on a historic scale: ~$400B over 6 months. Bitcoin ETFs have seen ~$4B outflows since May 14, putting pressure on the $BTC. This is a rotation of capital, not a decline in the value of Bitcoin. Volatility creates opportunity.”
Earlier, Chairman of Ripple-backed SBI Holdings Yoshitaka Kitao also noted The IPOs of three giant AI companies could have had a capital rollover. These IPOs include SpaceX, Anthropic, and OpenAI.
