Bitcoin Plummets Amid Shift in Spot ETF Flows—Market Where Forced Liquidations and Capital Rotation Intersect On June 4, Bitcoin briefly fell below $62,000, triggering a sharp decline that saw over $1.5 billion in leveraged positions liquidated within 24 hours. Mutual reinforcement between short-term selling pressure and forced liquidations directly fueled a surge in volatility. ([https://t.co/QL061oJyyr](https://t.co/2bD7CSwtiK)) However, on the same day, spot exchange-traded funds (ETFs) for Bitcoin and Ethereum listed in the U.S. reversed their outflow trend and returned to net inflows. Bitcoin ETFs recorded approximately $30.5 million in net inflows, while Ethereum ETFs saw around $193 million, maintaining substantial total assets under management. This reflects simultaneous movements: short-term trading activity alongside long-term asset allocation shifts. ([https://t.co/1TY2uxM3AO](https://t.co/Bb0VqKKPjl)) There is also strong market sentiment pointing to the impact of capital rotation. Statements from prominent investors suggest recent capital flows into AI-related sectors are influencing supply and demand dynamics in the cryptocurrency market. This perspective implies that the recent decline should not be simplistically interpreted as a loss of confidence. ([https://t.co/1TY2uxM3AO](https://t.co/pmfNW9BXJe)) Meanwhile, on-chain activity indicators have declined, highlighting a clear divergence between price movement and network transaction activity. Low levels of new wallet creation and daily transaction volume suggest reduced short-term market participation and increased caution. As speculative positions are unwound, resilience grounded in real-world demand and use cases is drawing increased attention. ([https://t.co/1TY2uxM3AO](https://t.co/9VbYFIdrkR)) Overall, this sharp decline appears to result from the combined effects of three layers: deleveraging, temporary capital reallocation, and continued long-term positioning. While additional short-term volatility is expected, inflows through ETFs and the stance of long-term investors may serve as supportive factors for market stability. Market participants must carefully monitor both forced liquidation risks and capital flow trends. ([https://t.co/pogAHcsLvE](https://t.co/RuRmxZjBek))