Bitcoin Sinks 5.3% as Ark, BlackRock IBIT Lead ETF Outflow
Bitcoin (BTC) tanked 5.30% to $62,351 amid heavy institutional selling pressure via exchange-traded funds (ETFs), underperforming a broadly weaker crypto market.
BTC price depreciation was primarily driven by a hawkish Federal Reserve outlook, which triggered institutional ETF outflows and a cascade of liquidations.
New Fed Chair Kevin Warsh’s debut was unexpectedly hawkish, signalling no imminent rate cuts and a potential hike this year. This removed a key macro tailwind, directly impacting institutional demand.
U.S. spot Bitcoin ETFs saw a net outflow of $82.16 million on June 17, led by Ark’s ARKB ($43.53 million) and BlackRock’s IBIT ($30.76 million).
Arkham Intelligence report indicates that BlackRock has become the third-largest Bitcoin-holding entity globally, with about 764,000 BTC.
The analysis places BlackRock behind only Satoshi Nakamoto and Coinbase, ranking it above Binance and Strategy, despite the latter reporting total holdings of 847,000 BTC.
After recent sharp rebound, the market is now repricing Bitcoin based on a “higher-for-longer” interest rate reality, weakening a primary source of structural demand.
BTC price decline triggered significant forced selling in leveraged positions. Bitcoin liquidations totalled $176.54 million over 24 hours, with longs accounting for over $160 million of that total.
A high concentration of leveraged longs acted as fuel, accelerating the downward move as stop-losses were hit. The immediate technical structure is weak, with price trapped below the key 78.6% Fibonacci retracement level near $64,230 and the 7-day SMA at $63,545.
The Relative Strength Index reading indicates oversold conditions, which could support a short-term bounce. The path of least resistance is down until Bitcoin can reclaim $64,230. The 200-week moving average near $62,358 is a critical historical support level to watch.
A decisive break and close below could trigger another leg down toward $60,000. The confluence of hawkish macro policy and forced liquidations has overwhelmed Bitcoin’s market structure in the short term. Bitcoin Slips as Bank of Japan Hikes Rates to 31-Year High
