Bitcoin Recovers After Steep Drop as ETF Outflows and Market Volatility Shape June’s Start

Bitcoin’s price action on June 6 and 7, 2025, illustrates the current volatility and shifting sentiment in the global crypto market, as confirmed by official price charts and trading data.

On June 6, Bitcoin experienced a sharp decline, dropping to $100,650.7 by midnight UTC, a move that pushed the asset below crucial technical levels on the 4-hour chart, including the 50-period moving average and the Ichimoku cloud.

The drop coincided with a net outflow of $47.8 million from Bitcoin ETF products, led by a $130.5 million withdrawal from IBIT, which outweighed inflows to other funds and signaled reduced institutional appetite for Bitcoin exposure.

This ETF outflow triggered increased selling pressure and higher trading volumes, with the BTC-USDT pair on Binance seeing a 15% spike in activity within a four-hour window.

The outflows and heightened volatility reflected broader risk-off sentiment, influenced by a 1.8% drop in the Nasdaq Composite and disappointing tech earnings, which often spill over into crypto markets due to their correlation as risk assets.

Treasury yields also rose, suggesting a shift of capital from crypto into traditional safe havens.

Bitcoin Recovers After Steep Drop as ETF Outflows and Market Volatility Shape June’s Start

Despite these pressures, Bitcoin rebounded on June 7, opening at $101,840 and climbing as high as $105,000 before stabilizing near $104,409.7, marking a 2.71% gain from the previous day.

The market cap for Bitcoin reached $2.07 trillion, and its dominance grew to 63.89% of the total crypto market, which itself increased by 0.67% to $3.26 trillion.

Trading volume, however, declined by 17.1% to $47.9 billion, suggesting that the rebound came with less aggressive buying than the earlier sell-off.

Technical analysis of the 4-hour chart shows Bitcoin still trading below the 50-period and 200-period moving averages, with the 50-period average poised to cross below the 200-period, a bearish signal known as a death cross.

The price remains below the Ichimoku cloud, indicating persistent short-term uncertainty.

However, on the daily chart, Bitcoin holds above the 200-day and 50-day moving averages, with the price sitting at the 9-day average and just below the 20-day, painting a more stable long-term picture.

Altcoins followed Bitcoin’s volatility but lagged in recovery. Ethereum gained 1.42% to reach $2,494.83, while XRP traded near $2.15, facing resistance at $2.28 after a sharp drop.

itecoin hovered around $88.88, showing little movement. The Altcoin Season Index at 21/100 confirmed that Bitcoin continues to outperform most altcoins, a typical pattern during risk-off periods.

Market sentiment remains mixed. The Fear and Greed Index sits at a neutral 55, and 82% of the community expresses bullish sentiment for Bitcoin’s prospects.

Traders and investors now watch ETF flows and macroeconomic signals closely, as these factors continue to drive short-term moves and shape the broader narrative of crypto as a maturing, interconnected asset class.