In early June, the cryptocurrency market experienced a noticeable correction. According to Avinash Shekhar, co-founder and CEO of the Indian crypto futures platform Pi42, as reported by foreign media, this was more of a momentum reset than a fundamental breakdown in the digital assets industry.
A weekly pullback accompanied by large-scale liquidations
The article notes that Bitcoin fell from around $72,000 to the $61,000 range over the week, Ethereum dropped 18% over seven days, and XRP declined to around $1.12. During the same period, the total cryptocurrency market capitalization fell to approximately $2.13 trillion, with most major assets declining more than 16%.
Within 48 hours, the total value of leveraged positions liquidated in the market at one point exceeded $1 billion. The article suggests this reflects how quickly borrowed funds exit when market sentiment weakens and liquidity tightens.
Funds shift toward stablecoins and infrastructure
Shekhar attributed this selling pressure to three factors: geopolitical tensions, 13 consecutive days of net outflows from Bitcoin ETFs, and a general reduction in risk exposure by investors. According to him, these factors are suppressing short-term prices but are not sufficient to indicate a change in the industry’s long-term trend.
In his view, what deserves more attention in this market cycle is the flow of capital, not just outflows. Some capital has not left the crypto space but has shifted toward sectors beyond major cryptocurrencies, including tokenization, stablecoins, blockchain infrastructure, and crypto allocations on corporate balance sheets.
Subsequent focus on legislation and the Federal Reserve
The article also noted that last week’s unexpectedly strong U.S. employment data, ongoing tensions in the Middle East, and policy signals ahead of the Federal Reserve’s meeting on June 16–17 have all increased pressure on risk assets. Shekhar believes that the correlation between crypto assets and traditional markets is strengthening, and the high correlation between Bitcoin and the S&P 500 is no longer a short-term phenomenon.
Next, the market will focus on four key areas: the progress of the U.S. CLARITY Act, whether Bitcoin ETF fund flows shift from net outflows back to net inflows, developer and user activity on major networks like Solana, and the policy signals emerging from the Fed’s June meeting.
Among other developments, the CLARITY Act has passed a bipartisan vote in the Senate Banking Committee and is now on the Senate legislative calendar. The article suggests that if the bill is enacted, the regulatory boundaries for digital assets in the U.S. will become clearer, potentially reducing institutional hesitation. Regarding ETFs, the article notes that there have been 13 consecutive trading days of net outflows, totaling approximately $4.33 billion; a reversal of this trend would be seen as a direct signal of rising institutional risk appetite.